Q3 2026 Kimco Realty Corp Earnings Call

October 29, 2026

Operator: Hello everyone. Thank you for joining us and welcome to Kimco Realty's Q3 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to David Bujnicki, Senior Vice President of Investor Relations and Strategy. Please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Dave Bujnicki, Senior Vice President of Investor Relations and Strategy.

Speaker #1: Please go ahead.

David Bujnicki: Thank you all for joining Kimco's quarterly earnings conference call. With me today are Conor Flynn, CEO, Ross Cooper, President and Chief Investment Officer, Dave Jamieson, Executive Vice President and Chief Operating Officer, Glenn Cohen, Executive Vice President and CFO, as well as other members of the Kimco leadership team who are available for Q&A. Before we begin, some of our comments today may include forward-looking statements based on management's current beliefs and expectations. These are subject to risks and uncertainties described in our SEC filings, and actual results may differ materially. We assume no obligation to update any forward-looking statements. We will also reference non-GAAP financial measures. Reconciliations to GAAP are available in our earnings release and supplemental package, both posted to our IR website along with an accompanying presentation. The same forward-looking caution applies to those materials. Following prepared remarks, we will open the call to Q&A.

Speaker #2: Thank you all for joining KIMCO's quarterly earnings conference call. With me today are Conor Flynn, CEO; Ross Cooper, President and Chief Investment Officer; Dave Jameson, Executive Vice President and Chief Operating Officer; Glenn Cohen, Executive Vice President and CFO; as well as other members of the KIMCO leadership team, who are available for Q&A.

Speaker #2: Before we begin, some of our comments today may include forward-looking statements based on management's current beliefs and expectations. These are subject to risk uncertainties described in our SEC filings, and actual results may differ materially.

David Bujnicki: These are subject to risks and uncertainties described in our SEC filings, and actual results may differ materially. We assume no obligation to update any forward-looking statements. We will also reference non-GAAP financial measures. Reconciliations to GAAP are available in our earnings release and supplemental package, both posted to our IR website along with an accompanying presentation. The same forward-looking caution applies to those materials. Following prepared remarks, we will open the call to Q&A. To allow a smooth and efficient call, please limit yourself to one question and re-queue for follow-ups. With that, I will turn the call over to Conor.

Speaker #2: We assume no obligation to update any forward-looking statements. We will also reference non-GAAP financial measures, reconciliations to GAAP are available in our earnings release and supplemental package.

Speaker #2: Both were posted to our IR website, along with an accompanying presentation. The same forward-looking caution applies to those materials. Following prepared remarks, we'll open the call to Q&A.

David Bujnicki: To allow a smooth and efficient call, please limit yourself to one question and re-queue for follow-ups. With that, I will turn the call over to Conor.

Speaker #2: To allow a smooth and efficient call, please limit yourself to one question and re-queue for follow-ups. And with that, I'll turn the call over to Conor.

Conor Flynn: Good morning, and thanks for joining us. I will start with the quarter and our strategy, and then Dave, Ross, and Glenn will cover operations, transactions, and our financial results in outlook. We delivered a strong Q3 and are raising our full-year FFO and same-property NOI outlook. FFO per share grew 6.8%, keeping us on track for a third consecutive year of FFO per share growth above 5%. At the start of the year, we said the Q1 would be the low point for same-property NOI growth, and that it would accelerate from there. That is exactly what we delivered. 1.7% in the Q1, 3.5% in the Q2, and 4.9% in the Q3. We are also seeing early benefits from One Kimco, our unified operating platform, in faster rent commencements and greater cost efficiency.

Speaker #3: Good morning, and thanks for joining us. I'll start with the quarter and our strategy, and then Dave, Ross, and Glenn will cover operations, transactions, and our financial results and outlook.

Speaker #3: We delivered a strong third quarter, and are raising our full-year FFO and same property NOI outlook. FFO per share grew 6.8%, keeping us on track for a third consecutive year of FFO per share growth above 5%.

Conor Flynn: At the start of the year, we said the Q1 would be the low point for same-property NOI growth, and that it would accelerate from there. That is exactly what we delivered. 1.7% in the Q1, 3.5% in the Q2, and 4.9% in the Q3. We are also seeing early benefits from One Kimco, our unified operating platform, in faster rent commencements and greater cost efficiency.

Speaker #3: At the start of the year, we said the first quarter would be the low point for same property NOI growth, and that it would accelerate from there.

Speaker #3: That is exactly what we delivered. 1.7% in the first quarter, 3.5% the second, and 4.9% in the third. We are also seeing early benefits from one KIMCO, our unified operating platform, and faster end commencements and greater cost efficiency.

Conor Flynn: Traffic at our centers remains strong despite higher rates and pressure on consumer sentiment, up nearly 3% year over year. Consumers continue to prioritize convenience and value, and our centers, anchored by grocery and everyday essentials, sit on their daily path of travel. New supply remains extremely limited, and higher construction and financing costs make new developments even less likely. That has pushed portfolio occupancy to an all-time high, with small shop occupancy at its record. We still have runway as newly signed anchors open and drive traffic to the shops around them. Retailers' own data shows how much their stores matter to their online business. Stores serve as last-mile fulfillment hubs, and ICSC research found that when a retailer closes a store, its online sales in that trade area fall by more than 11% on average.

Speaker #3: Traffic at our centers remains strong. Despite higher rates and pressure on consumer sentiment, up nearly 3% year over year. Consumers continue to prioritize convenience and value, and our centers anchored by grocery and everyday essentials sit on their daily path of travel.

Speaker #3: New supply remains extremely limited, and higher construction and financing costs make new development even less likely. That has pushed portfolio occupancy to an all-time high, with small shop occupancy at its record. We still have runway as newly signed anchors open and drive traffic to the shops around them.

Conor Flynn: We still have runway as newly signed anchors open and drive traffic to the shops around them. Retailers' own data shows how much their stores matter to their online business. Stores serve as last-mile fulfillment hubs, and ICSC research found that when a retailer closes a store, its online sales in that trade area fall by more than 11% on average.

Speaker #3: Retailers' own data shows how much their stores matter to their online business. Stores serve as last-mile fulfillment hubs, and ICSE research found that when a retailer closes a store, its online sales net trade area fall by more than 11% on average.

Conor Flynn: That is why retention remains near record levels and retailers keep reinvesting in their fleets, which supports continued rent growth. That demand drives our operating results. How we allocate capital is what compounds them, and it works like a flywheel. It starts with our currency. Flat growth assets like ground leases and single-tenant properties, multifamily assets that we have built on our own parking lots, and the free cash flow that our portfolio generates. Private buyers pay full value for those flat and multifamily assets, with our dispositions this year averaging a cap rate of approximately 5%. With approximately 14,000 multifamily units either built, active, or entitled, this provides a source of additional currency over time.

Speaker #3: That is why retention remains near record levels and retailers keep reinvesting in their fleets, which supports continued rent growth. That demand drives our operating results.

Speaker #3: How we allocate capital is what compounds them, and it works like a flywheel. It starts with our currency, flat growth assets like ground leases and single-tenant properties, multifamily assets that we've built on our own parking lots, and the free cash flow that our portfolio generates.

Speaker #3: Private buyers pay full value for those flat and multifamily assets, with their dispositions this year averaging a cap rate of approximately 5%. And with approximately $14,000 multifamily units either built, active, or entitled, this provides a source of additional currency over time.

Conor Flynn: We put it to work where it earns the most, acquiring grocery-anchored centers with higher yields and stronger growth, redeveloping our own centers at low double-digit returns, including roughly 28 grocery boxes, and making structured investments that set up future acquisitions. When our stock is the better value, we buy it back. The higher growth investments generate more free cash flow, and the cycle repeats, raising our grocery concentration each time. We believe our valuation does not reflect the quality and growth of the business.

Speaker #3: We put it to work where it earns the most: acquiring grocery-anchored centers with higher yields and stronger growth, redeveloping our own centers at low double-digit returns—including roughly 28 grocery boxes—and making structured investments that set up future acquisitions.

Speaker #3: When our stock is the better value, we buy it back. The higher growth investments generate more free cash flow, and the cycle repeats, raising our grocery concentration each time.

Speaker #3: We believe our valuation does not reflect the quality and growth of the business. Private market pricing for open-air grocery-anchored centers sits in the 5% to 6% range.

Conor Flynn: Private market pricing for open-air grocery-anchored centers sits in the 5% to 6% range, consistent with where we have bought and sold this year. While our share price implies a cap rate in the mid to high 7% range, we believe this disconnect creates a compelling opportunity. Rates may drive the headlines, but over time, fundamentals drive value, and we are not done. As we look to 2027, a meaningful part of our growth is already signed. We have one of the largest signed-but-not-open pipelines in the sector, and among the lowest debt maturities next year relative to our peer group, keeping our refinancing exposure minimal. Glenn will walk through those building blocks. That is why we believe Kimco Realty offers consistent growth and a growing dividend at a discounted valuation. With that, I will turn it over to Dave.

Speaker #3: Consistent with where we've bought and sold this year. While our share price implies a cap rate in the mid to high 7% range. We believe this disconnect creates a compelling opportunity.

Speaker #3: Rates may drive the headlines, but over time, fundamentals drive value. And we are not done. As we look at 2027, a meaningful part of our growth is already signed.

Conor Flynn: As we look to 2027, a meaningful part of our growth is already signed. We have one of the largest signed-but-not-open pipelines in the sector, and among the lowest debt maturities next year relative to our peer group, keeping our refinancing exposure minimal. Glenn will walk through those building blocks. That is why we believe Kimco Realty offers consistent growth and a growing dividend at a discounted valuation. With that, I will turn it over to Dave.

Speaker #3: We have one of the largest signed but not opened pipelines in the sector, and among the lowest debt maturities next year relative to our peer group.

Speaker #3: Keeping our refinancing exposure minimal. Glenn will walk through those building blocks. That is why we believe KIMCO offers consistent growth and a growing dividend at a discounted valuation.

Speaker #3: With that, I'll turn it over to Dave.

Dave Jamieson: Thanks, Conor, and good morning. Demand across our portfolio remains broad and deep. Lease occupancy reached an all-time high of 96.6%, while small shop occupancy remained at its record 92.9%. Anchor occupancy increased 40 basis points sequentially to 98.2%, within 70 basis points of our all-time high. Just as important, volume and pricing are moving together. We signed 444 leases totaling 2.7 million square feet at a blended cash spread of 12% on comparable spaces. New lease spreads were 31.5%, with anchors at 39.9% and non-anchors at 21%, highlighting the meaningful mark-to-market opportunity that remains in our small shop portfolio. That marks our 20th consecutive quarter of double-digit new lease spreads. Renewals and options were 7.3% and 7.7% respectively. A meaningful amount of our future growth is already signed. Economic occupancy increased 30 basis points to 92.7%, narrowing the spread with lease occupancy to 390 basis points.

Speaker #4: Thanks, Conor, and good morning. Demand across our portfolio remains broad and deep. Lease occupancy reached an all-time high of 96.6%, while small shop occupancy remained at its record, 92.9%.

Speaker #4: Anchor occupancy increased 40 basis points sequentially to 98.2% within 70 basis points of our all-time high. Just as important, volume and pricing are moving together.

Speaker #4: We signed 444 leases, totaling 2.7 million square feet, at a blended cash spread of 12% on comparable spaces. New lease spreads were 31.5%, with anchors at 39.9% and non-anchors at 21%.

Dave Jamieson: New lease spreads were 31.5%, with anchors at 39.9% and non-anchors at 21%, highlighting the meaningful mark-to-market opportunity that remains in our small shop portfolio. That marks our 20th consecutive quarter of double-digit new lease spreads. Renewals and options were 7.3% and 7.7% respectively. A meaningful amount of our future growth is already signed. Economic occupancy increased 30 basis points to 92.7%, narrowing the spread with lease occupancy to 390 basis points.

Speaker #4: Highlighting the meaningful mark-to-market opportunity that remains in our small shop portfolio. That marks our 20th consecutive quarter of double-digit new lease spreads. Renewals and options were 7.3% and 7.7% respectively.

Speaker #4: A meaningful amount of our future growth is already signed. Economic occupancy increased 30 basis points to 92.7%, narrowing the spread with lease occupancy to 390 basis points.

Dave Jamieson: That spread represents over 400 signed leases and approximately $76 million of annual base rent that is yet to commence. Our focus now is converting that signed pipeline into paying rent as quickly as possible. That is where One Kimco comes in, helping us convert leasing demand into earnings more quickly. We are seeing meaningful improvement on what we can control. Once a lease is signed, the next step is getting that tenant to rent commence. By pulling forward rent commencement dates, we now expect $34 million of rent from 2026 commencements, nearly 20% above our original expectations. That is a tangible example of how One Kimco is helping us convert leasing demand into earnings more quickly. We are also using the scale of the platform to drive operating leverage.

Speaker #4: That spread represents over 400 signed leases and approximately 76 million dollars of annual-based rent that is yet to commence. Our focus now is converting that signed pipeline into paying rent as quickly as possible.

Speaker #4: That is where Kimco comes in, helping us convert leasing demand into earnings more quickly. We are seeing meaningful improvements on what we can control.

Speaker #4: Once a lease is signed, the next step is getting that tenant to rent commence. By pulling forward rent commencement dates, we now expect 34 million dollars of rent from 2026 commencements nearly 20% above our original expectations.

Dave Jamieson: By pulling forward rent commencement dates, we now expect $34 million of rent from 2026 commencements, nearly 20% above our original expectations. That is a tangible example of how One Kimco is helping us convert leasing demand into earnings more quickly. We are also using the scale of the platform to drive operating leverage.

Speaker #4: That is a tangible example of how one KIMCO is helping us convert leasing demand into earnings more quickly. We're also using the scale of the platform to drive operating leverage.

Dave Jamieson: Recoveries on retail CAM and insurance have improved 300 basis points since 2024, and we continue to drive G&A efficiency as the platform grows. We are also deploying AI across the platform to find additional efficiencies. That work is still early, but together these efforts show how One Kimco translates our scale into better operating performance. The opportunity is straightforward. Strong retailer demand, significant signed rent waiting to commence, and a platform turning that demand into revenue faster and more efficiently. With that, I will turn it over to Ross.

Speaker #4: Recoveries on retail KIM and insurance have improved 300 basis points since 2024, and we continue to drive G&A efficiency as the platform grows. We are also deploying AI across the platform to find additional efficiencies.

Speaker #4: That work is still early, but together, these efforts show how one KIMCO translate our scale into better operating performance. So the opportunity is straightforward: strong retailer demand, significant signed rent waiting to commence, and a platform turning that demand into revenue faster and more efficiently.

Speaker #4: With that, I'll turn it over to Ross.

Ross Cooper: Thank you, Dave, and good morning. The Q3 advanced the capital recycling strategy Conor described, monetizing lower growth assets at attractive valuations and reinvesting where we can earn both higher yields and stronger growth. Recent market volatility has affected commercial real estate sectors unevenly, but high-quality open-air retail continues to hold up well. Pricing remains competitive, transactions are closing, and there is still significantly more capital looking to invest in the sector than product available. That depth of private demand reinforces the valuation disconnect Conor described, and it makes sourcing a real differentiator. Our joint venture platform and structured investment program let us find opportunities before they reach a crowded bidding process.

Speaker #3: Thank you, Dave, and good morning. The third quarter advanced the capital recycling strategy Conor described. Monetizing lower growth assets at attractive valuations and reinvesting where we can earn both higher yields and stronger growth.

Speaker #3: Recent market volatility has affected commercial real estate sectors unevenly. But high-quality, open-air retail, continues to hold up well. Pricing remains competitive, transactions are closing, and there is still significantly more capital looking to invest in the sector than product available.

Speaker #3: That depth of private demand reinforces the valuation disconnect Conor described. And it makes sourcing a real differentiator. Our joint venture platform and structured investment program let us find opportunities before they reach a crowded bidding process.

Ross Cooper: If rates remain elevated, we could see more dislocation and we are positioned to act where risk-adjusted returns are attractive, whether through core acquisitions from sellers who value certainty of execution or structured investments for owners of high-quality centers who need flexible capital. We see that as a growing source of opportunity as we move into 2027. During the quarter, we sold The Witmer for $211.5 million at an approximately 5.1% cap rate. Together with The Milton last quarter at a 4.9% cap rate, it shows the value we create by developing multifamily on land we already own and monetizing it. We also completed the previously announced $127 million sale of four Costco-anchored assets with low contractual rent growth and redeployed the proceeds through 1031 exchanges into Pompano Marketplace and Sunshine Plaza, two grocery-anchored centers in South Florida. Pompano is the third acquisition sourced through our structured investment program.

Speaker #3: If rates remain elevated, we could see more dislocation and we are positioned to act where risk-adjusted returns are attractive, whether through core acquisitions, from sellers who value certainty of execution, or structured investments for owners of high-quality centers who need flexible capital.

Speaker #3: We see that as a growing source of opportunity as we move into 2027. During the quarter, we sold the Whitmer for $211.5 million at an approximately 5.1% cap rate.

Speaker #3: Together with the Milton last quarter at a 4.9% cap rate, it shows the value we create by developing multifamily on land we already own and monetizing it.

Ross Cooper: We also completed the previously announced $127 million sale of four Costco-anchored assets with low contractual rent growth and redeployed the proceeds through 1031 exchanges into Pompano Marketplace and Sunshine Plaza, two grocery-anchored centers in South Florida. Pompano is the third acquisition sourced through our structured investment program.

Speaker #3: We also completed the previously announced $127 billion sale of four Costco-anchored assets with low contractual rent growth and redeployed the proceeds through 1031 exchanges into Pompano Marketplace and Sunshine Plaza, two grocery-anchored centers in South Florida.

Speaker #3: Pompano is the third acquisition source through our structured investment program. During the quarter, the program received $115 million of repayments, including Pompano, partially offset by $39 million of new investments.

Ross Cooper: During the quarter, the program received $115 million of repayments, including Pompano, partially offset by $39 million of new investments. That is the program working as intended. We earn an attractive return while invested and in some cases end up owning the real estate. New investment activity is picking up again, with two investments closed after quarter end totaling approximately $49 million at an average yield of over 10%. Year to date, we have sold $391 million of assets at a weighted average cap rate of 5.1% and acquired $118 million at 5.8%. We are raising our expected transaction volume to $400 million to $500 million while remaining net neutral for the year. That includes two grocery anchored acquisitions in a top 50 US metro market that we expect to close in the coming days.

Speaker #3: That is the program working as intended. We earned an attractive return while invested and, in some cases, end up owning the real estate. New investment activity is picking up again, with two investments closed after quarter end, totaling approximately $49 million and an average yield of over 10%.

Ross Cooper: Year to date, we have sold $391 million of assets at a weighted average cap rate of 5.1% and acquired $118 million at 5.8%. We are raising our expected transaction volume to $400 million to $500 million while remaining net neutral for the year. That includes two grocery anchored acquisitions in a top 50 US metro market that we expect to close in the coming days.

Speaker #3: Year to date, we have sold 391 million dollars of assets at a weighted average cap rate of 5.1% and acquired 118 million at 5.8%.

Speaker #3: We are raising our expected transaction volume to $400 million to $500 million, while remaining net neutral for the year. That includes two grocery-anchored acquisitions in a top 50 U.S.

Speaker #3: metro market that we expect to close in the coming dates. These are high-quality centers with strong grocery anchors and meaningful growth potential, and they are the kind of real estate our operating platform is built to improve.

Ross Cooper: These are high-quality centers with strong grocery anchors and meaningful growth potential, and they are the kind of real estate our operating platform is built to improve. We look forward to sharing more detail once they close. Our outlook assumes acquisition cap rates of approximately 6% compared with disposition cap rates in the low 5% range. The bigger difference is growth. The centers we are buying should grow approximately 250 to 300 basis points faster annually than the assets we are selling. Put simply, we are trading flat income for growth and picking up yield along the way. With that, I'll turn it over to Glenn.

Speaker #3: We look forward to sharing more detail once they close. Our outlook assumes acquisition cap rates of approximately 6% compared with disposition cap rates in the low 5% range.

Speaker #3: The bigger difference is growth. The centers we are buying should grow approximately 250 to 300 basis points faster annually than the assets we are selling.

Speaker #3: Put simply, we are trading flat income for growth, and picking up yield along the way. With that, I'll turn it over to Glenn.

Glenn Cohen: Thanks, Ross, and good morning. FFO was $0.47 per diluted share, up 6.8% from the Q3 of last year, with growth driven primarily by the operations of the business. Pro rata NOI increased $12.6 million, led by $10.5 million of higher consolidated minimum rent, supplemented by higher interest income and management fee income and lower preferred dividends. These benefits more than offset higher interest expense and lower financing income. In addition, credit loss for the quarter was 45 basis points, and for the 9 months, it was 51 basis points. Same property NOI growth of 4.9% was led by 3.2% higher minimum rents and 1.3% stronger net recoveries, with an additional benefit from lower credit loss. Year to date, same property NOI is up 3.3%. One financial result I want to highlight is margin.

Speaker #5: Thanks, Ross, and good morning. FFO was 47 cents per diluted share, up 6.8% from the third quarter of last year. With growth-driven primarily by the operations of the business.

Speaker #5: ProRed NOI increased 12.6 million, led by 10.5 million of higher consolidated minimum rent, supplemented by higher interest income and management fee income and lower preferred dividends.

Speaker #5: These benefits more than offset higher interest expense and lower financing income. In addition, credit loss for the quarter was 45 basis points, and for the nine months it was 51 basis points.

Glenn Cohen: In addition, credit loss for the quarter was 45 basis points, and for the 9 months, it was 51 basis points. Same property NOI growth of 4.9% was led by 3.2% higher minimum rents and 1.3% stronger net recoveries, with an additional benefit from lower credit loss. Year to date, same property NOI is up 3.3%. One financial result I want to highlight is margin.

Speaker #5: Same property NOI growth of 4.9% was led by 3.2% higher minimum rents and 1.3% stronger net recoveries. With an additional benefit from lower credit loss.

Speaker #5: Year to date, same property NOI is up 3.3%. One financial result I want to highlight is margin. Our consolidated NOI margin surpassed 70% this quarter, the first time since we reclassified certain G&A costs to operating expenses almost a decade ago.

Glenn Cohen: Our consolidated NOI margins surpassed 70% this quarter, the first time since we reclassified certain G&A costs for operating expenses almost a decade ago. Three factors drove the improvement: higher recoveries from our fixed CAM program, higher economic occupancy, and better collections. We are seeing positive operating leverage below the property level as well, with G&A as a percentage of revenue improving to 5.2% so far this year from 5.4% for the full year 2025 and 7.2% in 2019. Revenue acceleration, margin expansion, and G&A efficiency are areas where One Kimco is translating directly into our financial results. Turning to the balance sheet, we ended the quarter with consolidated net debt to EBITDA of 5 times and 5.3 times on a look-through basis, both at the best level since we began reporting these metrics.

Speaker #5: Three factors drove the improvement: higher recoveries from our fixed-cam program, higher economic occupancy, and better collections. We are seeing positive operating leverage below the property level as revenue improving to 5.2% so far this year from 5.4% for the full year 2025 and 7.2% in 2019.

Glenn Cohen: Revenue acceleration, margin expansion, and G&A efficiency are areas where One Kimco is translating directly into our financial results. Turning to the balance sheet, we ended the quarter with consolidated net debt to EBITDA of 5 times and 5.3 times on a look-through basis, both at the best level since we began reporting these metrics.

Speaker #5: Revenue acceleration margin expansion and G&A efficiency are areas where one KIMCO is translating directly into our financial results. Turning to the balance sheet, we ended the quarter with consolidated net debt to EBITDA of 5 times and 5.3 times on a look-through basis.

Speaker #5: Both are at the best level since we began reporting these metrics. Combined with more than $2.5 billion of liquidity, that gives us significant capacity to fund future growth.

Glenn Cohen: Combined with more than $2.5 billion of liquidity, that gives us significant capacity to fund future growth. Following the repayment of our $500 million, 2.8% notes in October, we have no notable remaining debt maturities this year. Looking to 2027, our maturities are modest at just $466 million, with a weighted average coupon of 4%, which limits the impact from the higher interest rate environment today. Our credit ratings remain A- at S&P and Fitch and A3 at Moody's, with a stable outlook from each. During the quarter, we repurchased $150 million of common shares at a weighted average price of $23.80, representing an FFO yield of roughly 8%. We also repurchased approximately $74 million of preferred stock. Both were accretive uses of capital.

Speaker #5: Following the repayment of our $500 million 2.8% notes in October, we have no notable remaining debt maturities this year. Looking to 2027, our maturities are modest at just $466 million, with a weighted average coupon of 4%, which limits the impact from the higher interest rate environment today.

Speaker #5: Our credit ratings remain A- at S&P and Fitch and A-3 at Moody's, with a stable outlook from each. During the quarter, we repurchased 150 million dollars of common shares at a weighted average price of $23.80, representing an FFO yield of roughly 8%.

Speaker #5: We also repurchased approximately $74 million of preferred stock; both were accretive uses of capital. We expect to generate $175 million of free cash flow after dividends, leasing, and maintenance capital this year, providing substantial capacity to reinvest in future growth.

Glenn Cohen: We expect to generate $175 million of free cash flow after dividends and leasing and maintenance capital this year, providing substantial capacity to reinvest in future growth. Now to our outlook. We are raising our full year FFO guidance range to a new range of $1.84 to $1.86 per diluted share and our same property NOI growth to a range of 3.5% to 3.8%. We are also improving our credit loss assumption to between 50 and 60 basis points. This higher outlook reflects continued strength in rent commencements, retention levels, and recovery rates, along with disciplined cost management. As we look ahead, several building blocks are already in place. Approximately $64 million or roughly 85% of our $76 million signed not open pipeline is scheduled to commence from the Q4 through 2027.

Speaker #5: Now to our outlook. We are raising our

Speaker #6: full-year FFO guidance range to a new range of $1.84 to $1.86 per diluted share, and our same-property NOI growth to a range of 3.5% to 4.5%.

Speaker #7: to 3.8%.

Glenn Cohen: We are also improving our credit loss assumption to between 50 and 60 basis points. This higher outlook reflects continued strength in rent commencements, retention levels, and recovery rates, along with disciplined cost management. As we look ahead, several building blocks are already in place. Approximately $64 million or roughly 85% of our $76 million signed not open pipeline is scheduled to commence from the Q4 through 2027.

Speaker #6: We are also improving our credit loss assumption to between 50 to 60 basis points. This higher outlook reflects continued strength in rent commencements, retention levels, and recovery rates, along with disciplined cost management.

Speaker #6: As we look ahead, several building blocks are already in place. Approximately $64 million, or roughly 85% of our $76 million signed, not-opened pipeline, is scheduled to commence from the fourth quarter through 2027.

Glenn Cohen: In addition, our debt maturities remain modest, and the capital we have recycled this year is being redeployed into higher growth centers. We will provide our full 2027 outlook with our Q4 results. In summary, we delivered operationally driven earnings growth, expanded margins, and maintained a strong balance sheet. Combined with the embedded growth already in place, that positions us well heading into 2027. With that, we are ready to take your questions.

Speaker #6: In addition, our debt maturities remain modest. And the capital we have recycled this year is being redeployed into higher growth centers. We will provide our full 2027 outlook with our 4th quarter results.

Speaker #6: In summary, we delivered operationally driven earnings growth, expanded margins, and maintained a strong balance sheet. Combined with the embedded growth already in place, that positions us well heading into 2027.

Speaker #6: And with that, we're ready to take your questions.

Operator: We will now begin the question and answer session. Please limit yourself to 1 question. If you would like to ask a follow-up question, please rejoin the queue. If you would like to ask a question, please press star 1 to raise your hand, and to withdraw that question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Goldsmith with UBS. Your line is open. Please go ahead.

Speaker #8: We will now begin the question and answer session. Please limit yourself to one question. If you'd like to ask a follow-up question, please rejoin the queue.

Speaker #8: If you would like to ask a question, please press star 1 to raise your hand, and to withdraw that question, press star 1 again.

Speaker #8: We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you're muted locally, please remember to unmute your device.

Speaker #8: Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Goldsmith with UBS. Your line is open.

Speaker #8: Please go ahead.

Michael Goldsmith: Good morning. Thanks a lot for taking my questions. You have been very active on the capital recycling piece, and as you said here today, acquisitions trail your dispositions through Q3, and you expect transaction volume to be net neutral on the year. Then think also structured investment redemptions are outpacing deployment. That is expected to be up materially on the year. Just, I guess the question is, what visibility into both acquisitions and structured investments do you have in Q4? Just given the macro backdrop, any timing risk associated with that? Thank you.

Speaker #6: Good morning. Thanks a lot for taking my question. You've been very active on the capital recycling piece. And as you said here today, acquisitions trail your dispositions through the 3rd quarter.

Speaker #6: And you expect transaction volume to be net neutral on the year. And then think also structured investment redemptions are outpacing deployment. That's expected to be up materially on the year.

Speaker #6: So just, I guess the question is, what visibility into both acquisitions and structured investments do you have in the 4th quarter? And just given the macro backdrop, any any type— timing risk associated with that?

Speaker #6: Thank you. Sure. Yeah. Thanks, Michael. We're really excited about the capital recycling that we've been able to execute on, as evidenced by the results.

Ross Cooper: Sure. Thanks, Michael. We are really excited about the capital recycling that we have been able to execute on, as evidenced by the results. We were really front-loaded on the dispositions, which we think was really strong for us, particularly as the window was very much open for dispositions at very aggressive pricing, particularly for those single-tenant ground leases that are lower growth and some of the multifamily that we sold at very aggressive cap rates. So feel really good about the execution there. We do have very good insight into Q4. As I mentioned in the prepared remarks, we have 2 grocery-anchored assets that we are really excited about that are going to be closing very soon, in the coming days. Those 2 transactions alone will bring us back to that plus or minus net neutrality that we talked about for the year.

Speaker #6: We were really front-loaded on the dispositions, which we think was really strong for us, particularly as the window was very much open for dispositions at very aggressive pricing, particularly for those single-tenant ground leases that are lower growth than some of the multifamily that we sold at very aggressive cap rates.

Speaker #6: So, I feel really good about the execution there. We do have very good insight into the fourth quarter. As I mentioned in the prepared remarks, we have two grocery-anchored assets that we're really excited about, which are going to be closing very soon in the coming days.

Ross Cooper: We do have very good insight into Q4. As I mentioned in the prepared remarks, we have 2 grocery-anchored assets that we are really excited about that are going to be closing very soon, in the coming days. Those 2 transactions alone will bring us back to that plus or minus net neutrality that we talked about for the year.

Speaker #6: Those 2 transactions alone will bring us back to that plus or minus net neutrality that we talked about for the year. So, that, that will sort of close off the pipeline and the transactions on the acquisition side.

Ross Cooper: So that will sort of close off the pipeline and the transaction on the acquisition side more or less for the year. On the structured side, as we indicated, we did close a couple of deals or fund a couple deals already here in Q4. That brings us up to back to a little bit in the positive on the overall volume for the year. We have a couple of things that are in the pipeline right now. Timing is always a little bit in flux, so one or 2 of those deals could float over to Q1 next year. But I think the important part is that we're seeing a lot of activity in that program, even within the last 30 or 45 days.

Speaker #6: More or less for the year. On the structured side, as we indicated, we did close a couple of deals or fund a couple deals already here in the 4th quarter.

Speaker #6: That brings us up to, back to a little bit in the positive. On, on the overall volume for the year. We have a couple of things that are in the pipeline right now.

Speaker #6: You know, timing is always a little bit in flux, so one or two of those deals could float over to, to Q1 next year.

Speaker #6: But I think the important part is that we're seeing a lot of activity in that program, even within the last 30 or 45 days.

Ross Cooper: What we've seen over the last few years since this program commenced 5 or 6 years ago, is that in times of increased volatility or uncertainty, that's where we see this program being a real differentiator. So we're excited about this program. We really think that there's going to be increased activity, particularly if the rate environment volatility remains elevated for a period of time. As you've seen and what we indicated in Q3, that we did acquire our third asset from this program in Q3. So we anticipate that there will be additional opportunities from within that program to fuel our acquisitions pipeline as we enter 2027. All in all, the program is really working as intended.

Speaker #6: What we've seen over the last few years since this program commenced 5 or 6 years ago is that in times of increased volatility or uncertainty, that's where we see this program being a real differentiator.

Speaker #6: So, we're excited about this program. We're really, we really think that there's going to be increased activity, particularly if the rate environment volatility remains elevated for a period of time.

Speaker #6: And as you've seen and what we, we indicated in the 3rd quarter is that we did acquire our 3rd asset from this program in Q3.

Speaker #6: And so, we anticipate that there will be additional opportunities from within that program. to fuel our acquisitions pipeline as we enter 2027. So all in all, it's— the program is really working as intended.

Operator: Your next question comes to the line of Alexander Goldfarb with Piper Sandler. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Alexander Goldfarb with Piper Sandler. Your line is open. Please go ahead.

Alexander Goldfarb: Hey, morning out there. Maybe just following up on that line. We all appreciate the robust demand for hard assets for shopping centers that continues. But on the debt and preferred equity, are you seeing a similar ramp-up in some of these private platforms that are competing more for the debt and preferred equity side of the business, or is most of the institutional capital that we hear about really just targeting direct ownership? I'm just trying to understand, because obviously 10% plus yields on your DP is pretty attractive. Just trying to understand if we should expect that to compress.

Speaker #6: Hey, morning out there. Maybe just following up on that line. Yeah, we all appreciate the robust demand for hard assets. for shopping centers that continues.

Speaker #6: But on the debt and preferred equity, are you seeing a similar ramp-up in some of these private platforms that are competing more for the debt and preferred equity side of the business, or is most of the institutional capital that we hear about really just targeting direct ownership?

Speaker #6: I'm just trying to understand because obviously 10% plus yields on your DPE is pretty attractive. Just trying to understand if we should expect, expect that to compress.

Ross Cooper: Yeah. Thanks, Alexander Goldfarb. We have always had competition within the program, but I think that we have a differentiation in that there are very few real operators that are competing with this capital. It has been interesting to watch the evolution over the last five or six years of this program and what the competition set looks like. I would say earlier in the program, it was more in the debt funds and more the traditional lending sources. That sort of transitioned over to competing a bit with more LP capital for joint venture equity capital for our program. But at the end of the day, I think we provide a few things that others do not. One, having us in the capital stack we have seen has definitely impacted to the positive our borrower's ability and execution on the senior financing. So that is one differentiator.

Speaker #6: Yeah, thanks, Alex. I mean, we've always had competition within the program, but I think that we have a differentiation in that there are very few real operators.

Speaker #6: that are competing with this capital. You know, it's been interesting to watch the evolution over the last 5 or 6 years of this program and what the competition set looks like.

Ross Cooper: I would say earlier in the program, it was more in the debt funds and more the traditional lending sources. That sort of transitioned over to competing a bit with more LP capital for joint venture equity capital for our program. But at the end of the day, I think we provide a few things that others do not. One, having us in the capital stack we have seen has definitely impacted to the positive our borrower's ability and execution on the senior financing. So that is one differentiator.

Speaker #6: I would say earlier in the program, it was more in the debt funds. and more of the traditional lending sources. That sort of transitioned over to competing a bit with more LP capital for joint venture equity capital for our program.

Speaker #6: But at the end of the day, I think we provide a few things that others don't. One, having us in the capital stack, we've seen has definitely impacted to the positive our borrowers' ability and execution on the senior financing.

Speaker #6: So, that's one, one differentiator. The other is while it's a passive program, we do lend a hand in assistance as it relates to tenant relationships.

Ross Cooper: The other is, while it is a passive program, we do lend a hand in assistance as it relates to tenant relationships. So to the extent that our borrower needs to utilize our team and our platform to help with a renewal or something related to existing tenants, that is something that we can provide that others do not. So when you factor in all of those differentiators, we have seen that our program has been very much in need and well-received by borrowers. And you can see that by the groups that we have worked with that have come back for the second, the third, the fourth deal. So we feel really good about where we sit in this program, what we offer, and the differentiation.

Speaker #6: So, to the extent that our borrower needs to utilize our team and our platform to help with a renewal or something related to existing tenants, that's something that we can provide that others don't.

Speaker #6: So, when you factor in all of those differentiators, we've seen that our program has been very much in need and well received by borrowers.

Ross Cooper: And you can see that by the groups that we have worked with that have come back for the second, the third, the fourth deal. So we feel really good about where we sit in this program, what we offer, and the differentiation. There is always going to be a unique and bespoke aspect to each and every one of these deals and these investments, but we see a pipeline that will continue to build.

Speaker #6: And you can see that by the groups that we've worked with that have come back for the second, the third, the fourth deal. So, we feel really good about where we sit in this program, what we offer, and the differentiation.

Ross Cooper: There is always going to be a unique and bespoke aspect to each and every one of these deals and these investments, but we see a pipeline that will continue to build.

Speaker #6: There's always going to be a unique, unique and bespoke asset. aspect to each and every one of these deals and these investments, but we see a pipeline that will continue to build.

Conor Flynn: The only other piece that I think differentiates our program is the ROFO and the ROFR that we get on every single investment. The debt funds really do not value that, and I think that is where the Kimco Realty shareholder really gets the benefit of this program, because in essence, all of these assets would be great assets to own for the Kimco Realty portfolio. And I think that piece of it is a big differentiator for us as we like to say we get paid to wait.

Speaker #6: The only other piece that I think differentiates our program is the ROFO and the ROFR that we get on every single investment. The debt funds really do not value that, and I think that is where the Kimco shareholder really gets the benefit of this program, because in essence, all of these assets would be great assets to own for the Kimco portfolio.

Speaker #6: And I think that piece of it is a big differentiator for us as we We like to say we get paid to wait, and, you know, we continue to harvest that opportunity set in the future as well.

Glenn Cohen: And we continue to harvest that opportunity set in the future as well.

Dave Jamieson: Yeah. If I could just also add back on top of that, I think the other factor that is really important is we've seen the quality of the assets in this program continue to improve. So just this quarter, we funded a Trader Joe's anchored asset in California, a Whole Foods anchored asset. So we really do see tremendous value in these right of first offers and right of first refusals, evidenced by the three that we've acquired and hopefully some others that we'll look to acquire in 2027 and beyond.

Speaker #6: Yeah, if I could just also add back on top of that, I think the other factor that is really important is we've seen the quality of the assets in this program continue to improve.

Speaker #6: So, just this quarter, we funded a Trader Joe's-anchored asset in California, a Whole Foods-anchored asset. So, we really do see tremendous value in these right-of-first-offers and right-of-first-refusals.

Speaker #6: evidenced by the 3 that we've acquired and hopefully some others that we'll look to acquire in '27 and beyond.

Operator: Your next question comes from the line of Rich Hightower with Barclays. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Rich Hightower with Barclays. Your line is open. Please go ahead.

Rich Hightower: Hey, good morning, guys. Thanks for taking the question here. Just on the changes to the full year guidance here, obviously, you had some one-timer effects. I noticed a pretty sizable uptick in what you call non-cash GAAP revenue of about $8 million driving part of that. So just help us understand maybe the movements in the core and non-core that are driving the FFO increase, please.

Speaker #9: Hey, good morning, guys. Thanks for taking my question here. Just on the changes to the full-year guidance here, obviously, you had sort of some one-timer effects.

Speaker #9: I noticed a pretty sizable uptick in what you call noncash GAAP revenue of about $8 million driving part of that. Just help us understand maybe the movements in sort of the core and noncore that are driving the FFO increase, please?

Glenn Cohen: I will start, and then I will pass it to Kathleen. From the core part, it is really coming from faster rent commencements that we have. It is coming from the improvements in credit loss. It is coming from the maintaining and discipline around costs, the G&A costs that we are focused on. All those components are definitely helping. Obviously, doing our convert when we did it, again, helped on the interest expense side also. Then maybe talk about the non-GAAP.

Speaker #10: I'll start and then I'll pass it to Kathleen. But from the core part, I mean, it's really coming from faster rent commencements that we have.

Speaker #10: It's coming from the improvements in credit loss. It's coming from the maintaining and discipline around costs, you know, the G&A costs that we're focused on.

Speaker #10: So all those components are definitely helping. Obviously, doing our convert when we did it, again, helped on the interest expense side also. And then maybe talk about the non-GAAP.

[Company Representative] (Kimco Realty): Yeah. Rich, on the non-cash GAAP revenues, it is really driven from straight line, and there are two pieces to the straight line. One is just the leasing volume that we are experiencing and how quickly we are able to tender those spaces to the tenants, and then as well as the bumps that are included in those leases. Then the second part, just like we are seeing the positive results in credit loss, that flows over to straight line as well from a reserve perspective. We are just not seeing any significant reserves that we are needing to take in that area, which is helping increase that income that you are seeing come through.

Speaker #11: Yeah. So Rich, on the noncash GAAP revenues, it's really driven from straight-line, and there's 2 pieces to the straight-line. One is just the leasing volume that we're experiencing and how quickly we're able to tender those spaces to the tenants.

Speaker #11: And then as well as the bumps that are included in those leases. And then the second part, just like we're seeing the positive results in credit loss, that flows over to straight-line as well from a reserve perspective.

Speaker #11: So we're just not seeing any significant reserves that we're needing to take in that area, which is helping increase that income that you're seeing come through.

Rich Hightower: All right. Thank you.

Speaker #11: All right. Thank you.

Operator: Your next question comes from the line of Ronald Kamdem with Morgan Stanley. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Ronald Camden with Morgan Stanley. Your line is open. Please go ahead. Hey, just a quick one on SHOP occupancy.

Ronald Kamdem: Hey, just a quick one on shop occupancy. I know we are at record right now, and if you could just remind us what you think more upside is on that piece of it, and how are you sort of getting more pricing power at these levels through the lease contract, whether it is escalators or co-tenancies or options. Just would like to hear how those are trending at these levels. Thanks.

Speaker #8: If you could

Speaker #10: I know we're at record right now, and if you could just remind us what you think more upside is on that piece of it and how are you sort of getting more pricing power at these levels through the lease contract, whether it's escalators or co-tenancies or options.

Speaker #10: Just would like to hear how those are trending at these levels. Thanks.

Dave Jamieson: Yeah. Thanks for the question. It is a good one. So just on occupancy in general, first starting with the small shop side, as you know, we are holding at a record high right now. But when you look at our pipeline and the activity and the investments that we are making, that is where we are encouraged, and we see further upside. Having over 28 grocery boxes under construction, redeveloping and repositioning those assets, building better mousetraps only drives value to the adjacent space, which also then converts to that halo effect that we talk a lot about that drives a premium in terms of the rents, right? Higher traffic volume centers drives more interest from small shop retailers, drives more sales, converts to higher rent for us. So we see room to run there. On the anchor side, as I mentioned earlier in prepared remarks, we are still below our all-time high there.

Speaker #12: Yeah, thanks for the question. It's a good one. So just on occupancy in general, first starting with the small SHOP side, as you know, we're holding at a record high right now.

Speaker #12: But when you look at our pipeline and the activity and the investments that we're making, that's where we're encouraged and we see further upside.

Dave Jamieson: Having over 28 grocery boxes under construction, redeveloping and repositioning those assets, building better mousetraps only drives value to the adjacent space, which also then converts to that halo effect that we talk a lot about that drives a premium in terms of the rents, right? Higher traffic volume centers drives more interest from small shop retailers, drives more sales, converts to higher rent for us. So we see room to run there. On the anchor side, as I mentioned earlier in prepared remarks, we are still below our all-time high there.

Speaker #12: Having over 28 grocery boxes under construction, redeveloping and repositioning those assets, building better mousetraps only drives value to the adjacent space, which also then converts to that halo effect.

Speaker #12: that we talk a lot about that drives a premium in terms of the rents, right? Higher traffic volume centers drives more interest from small SHOP retailers, drives more sales, converts to higher rent.

Speaker #12: So, we see room to run there. On the anchor side, as I mentioned earlier in prepared remarks, we're still below our all-time high there.

Dave Jamieson: We have about another 70, 80 basis points to gain before we achieve that. So we do see room to run, and considering the tailwinds of no supply here and outpaced demand, there is that opportunity to push it further. As it relates to the contract rents and the negotiated terms, we continue to see improvement. It is really a partnership between both the retailer and the landlord. And they really sort of respect and regard the relationship that they have in the center with us and what we are doing. On the economic side, our big push is on growth. We have seen annual escalators not only flow through on the small shop side, but just this quarter alone, we saw over 30% of our anchor deal, new lease deals actually have annual escalators in it.

Speaker #12: We have about another 70, 80 basis points of gain before we achieve that. So we do see room to run and considering the tailwinds of no supply here and outpaced demand, you know, there's that opportunity to push it further.

Speaker #12: As it relates to, you know, the contract rents and the negotiated terms, we continue to see improvement. It's really a partnership between both, you know, the retailer and the landlord.

Speaker #12: And you know, they really sort of respect and regard the relationship that they have in the center with us and what we're doing. And so, on the economic side, you know, our big push is on growth.

Dave Jamieson: On the economic side, our big push is on growth. We have seen annual escalators not only flow through on the small shop side, but just this quarter alone, we saw over 30% of our anchor deal, new lease deals actually have annual escalators in it. This is an initiative we have been pushing for a long time, and we are starting to see that conversion play out. Again, it is all the investments that we have been making at the property level and with the team to drive that.

Speaker #12: And so, we've seen annual escalators not only flow through on the small shop side, but just this quarter alone, we saw 30% over 30% of our anchor deal, new lease deals actually have annual escalators in it.

Dave Jamieson: This is an initiative we have been pushing for a long time, and we are starting to see that conversion play out. Again, it is all the investments that we have been making at the property level and with the team to drive that.

Speaker #12: This is an initiative we've been pushing for a long time, and we're starting to see that conversion play out. And again, it's all the investments that we've been making, you know, at the property level and with the team to drive that.

Operator: Your next question comes from the line of Michael Griffin with Evercore ISI. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Michael Griffin with Evercore ISI. Your line is open. Please go ahead.

Michael Griffin: Great. Thanks. Appreciate the commentary so far. Maybe just circling back on the guidance point. I appreciated, Glenn, your comments on some of the line items there. Can you give us a sense of what the offsets are to get to the 1.5 cent increase? It looks like same property NOI is better, bad debt assumptions come down. You are getting the benefit from the accretion from the share repurchases as well as the higher non-cash revenues. What would be the offsets on those? Is it timing around capital deployment? Are there other factors? Lastly, can you comment, were the share repurchases initially contemplated in your guidance, or were they just additive as the year progressed? Thank you.

Speaker #12: Great. Thanks. Appreciate the commentary so far. Maybe just circling back on the guidance point. I appreciated, Glenn, your comments on some of the line items there.

Speaker #12: But Can you give us a sense of what the offsets are to get to the 1.5-cent increase? It looks like same-property NOI is better, bad debt assumptions come down, you're getting the benefit from the accretion from the share repurchases.

Speaker #12: as well as the higher noncash revenues, just what would be the offsets on those? Is it timing around capital deployment? Are there other factors?

Speaker #12: And then lastly, can you comment were the share repurchases initially contemplated in your guidance or were they just additive to— as the year progressed?

Speaker #12: Thank you.

Speaker #13: So I'll start with your last piece. They were additive. Again, we look at capital allocation, look at our cap— you know, our sources and uses on a constant basis.

Glenn Cohen: I will start with your last piece. They were additive. Again, we look at capital allocation, look at our sources and uses on a constant basis. With being able to deploy capital from very low cap rate sales that we made on the residential properties, and part of that not being able to be 1031 exchanged, redeploying that capital when the price is, in our view, trading at a pretty decent discount, earning an FFO yield of over 8 or around 8.

Speaker #13: And with being able to deploy capital from, you know, very low cap rate sales that we made on the residential properties. And part of that not being able to be 1031 exchanged.

Speaker #13: You know, redeploying that capital when the price is, in our view, you know, trading at a pretty decent discount, earning an FFO yield of over 8%.

Speaker #13: Or around 8%, when we're selling stuff at 5.1%, with the balance sheet capacity we have, really made a lot of sense. So that was additive to it.

Glenn Cohen: When we are selling stuff at 5.1 with the balance sheet capacity we have, really made a lot of sense. That was additive to it. The increase in the guidance really is coming from, if you look at where we were at the end of Q3, our range was $1.83, $1.84. We have bumped the guidance now where the low end of the range with the upper end, with the other 2 cents. We are a penny higher than what we had in our forecast for Q3, so that kind of gets you there. Based on the activity we are seeing, the improvement in our expectations for where same site will end for the full year, our expectations for further improvement in credit loss for the full year, and the speed at which we are seeing lease up and the pipeline coming online.

Speaker #13: The increase in the guidance really is coming from, if you look at where we were at the end of the 3rd quarter, our range was $1.85 to $1.8384.

Speaker #13: So we've bumped the guidance now where the low end of the range with the upper end with the other 2 cents. We're a penny higher than what we had in our forecast.

Speaker #13: for the 3rd quarter. So that kind of gets you there. And based on the activity we're seeing, the improvement in our expectations for where same-site will end for the full year, our expectations for further improvement in credit loss for the full year, and the speed at which we're seeing lease-up and the pipeline coming online.

Glenn Cohen: Based on the activity we are seeing, the improvement in our expectations for where same site will end for the full year, our expectations for further improvement in credit loss for the full year, and the speed at which we are seeing lease up and the pipeline coming online. There is a good chance we could get to the upper end of the range. But we remain very comfortable with the mid to upper end of the range and the guidance.

Glenn Cohen: There is a good chance we could get to the upper end of the range. But we remain very comfortable with the mid to upper end of the range and the guidance.

Speaker #13: You know, there's a good chance we could get to the upper end of the range, but we remain very comfortable with the mid to upper end of the range in the guidance.

Operator: Your next question comes from the line of Haendel St. Just with Mizuho. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Handel St. Just with Mizuho Health. Your line is open. Please go ahead.

Ravi Vaidya: Hi, good morning. This is Ravi Vaidya on the line for Haendel. Hope you guys are doing well. I wanted to ask about the acquisitions that are expected to close here in the next couple of days. When did the process start for this, and what is the anticipated cap rate for these deals? Going forward, does it make sense to wait or pause on acquisitions as cap rates are likely to move upward from here, given the higher interest rate backdrop? Thanks.

Speaker #12: Hi, good morning. This is Ravi Vaidya on the line for Handel. Hope you guys are doing well. I wanted to ask about the acquisitions that are expected to close here in the next couple days.

Speaker #12: When did the process start for this? And what's the— what is the anticipated cap rate for these deals? Maybe going forward, Does it make sense to maybe wait or pause on acquisitions as cap rates are likely to move upward from here given the higher interest rate backdrop?

Speaker #12: Thanks.

Ross Cooper: Sure, thanks. We have been working on these deals for several months now, but we are very confident in the pricing that we are able to negotiate and the yields that we are going to achieve. I think most importantly, and I know everybody likes to look at the going in yield, the growth that we believe that our team can generate from these two assets is significant. As we indicated, a good 300 basis points higher than what we have sold to fund it. Keep in mind that the funding sources were already closed between the Costcos, the multifamily, and some of the other dispositions. So we feel really good about that spread. We feel really good about that growth.

Speaker #6: Sure. Thanks. Yeah, I mean, we have been working on these deals for several months now, but we're very confident in the pricing that we're able to negotiate and the yields that we're going to achieve.

Speaker #6: I think most importantly, and I know everybody likes to look at the going-in yield, the growth that we believe that our team can generate from these 2 assets is significant, as we indicated, you know, a good 300 basis points higher than what we've sold to fund it.

Speaker #6: And keep in mind that the funding sources were already closed between the Costcos, the multifamily, and some of the other dispositions. So we feel really good about that spread.

Speaker #6: We feel really good about that growth. And then as we think about, you know, the assets themselves, we will provide a little bit more detail in the coming days once we close, and we'll put out some information that we can talk through.

Ross Cooper: And then as we think about the assets themselves, we will provide a little bit more detail in the coming days once we close, and we will put out some information that we can talk through. But we are extremely excited about that. We think that the demand for products will continue to be strong for assets that are high quality grocery anchor that have growth like this, even as there is some noise in the volatility in the rate environment. In terms of the yield themselves, as I mentioned, we will provide more information.

Speaker #6: But we're extremely excited about that. We think that, you know, the demand for, for products will continue to be strong for assets that are high-quality grocery anchor that have growth like this.

Speaker #6: Even as there's some noise in the, you know, the volatility in the rate environment. In terms of the yield themselves, as I mentioned, we'll provide more information.

Ross Cooper: However, if you look at where we increased the guidance on the yield levels, going from what was a 5.8% to a low 6%, you could sort of back into where the yields are in these 2 acquisitions, because as I mentioned, these 2 will be pretty much the bulk or the lion's share of all the Q4 transaction activity for us. So that will bring us back to that neutral level and the volumes that we indicated in the guidance. So you can kind of see directionally where that is.

Speaker #6: However, if you look at where we increased the guidance on the yield levels going from what was a 5.8% to a low 6%, you could sort of back into where the yields are in these 2 acquisitions because, as I mentioned, these 2 will be the— pretty much the bulk or the lion's share of all the 4th quarter transaction activity for us.

Speaker #6: So that will bring us back to that neutral level in the volumes that we indicated in the guidance. And so you can kind of see directionally where that is.

Operator: Your next question comes from the line of Jamie Feldman with Wells Fargo. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Jamie Feldman with Wells Fargo. Your line is open. Please go ahead.

Jamie Feldman: Great. Thanks for taking the question. So, you tightened your credit loss guidance range. What gave you confidence to do that? Maybe just a bigger picture question as we think about next year. Definitely some signposts out there of greater concerns about the consumer or just retailers in certain segments of the retail market. Sounds like you are very confident and exciting time to be expanding the investment pipeline. But just as you think over the next 12 to 18 months, especially as you complete all these investments, what is your base case of the consumer and the economy? Are you having any kind of trepidations or any kind of concerns about where the economy and consumer might be going?

Speaker #10: Great, thanks for taking the question. So, you tightened your credit loss guidance range. What gave you confidence to do that? And maybe just a bigger picture question as we think about next year.

Speaker #10: I mean, definitely some signposts out there of you know, greater concerns about the consumer or just retailers in certain segments of the retail market.

Speaker #10: Sounds like you're very confident and, and exciting time to be expanding the investment pipeline. But just as you think over the next 12 to 18 months, especially as you, as you complete all these investments, what is like your base case of the consumer and the economy?

Speaker #10: And are you having any kind of, you know, trepidations or any kind of concerns about where the economy and consumer might be going?

Conor Flynn: Sure. I am happy to start. Coming into the holiday season, it seems like most of the numbers that are projected for the holiday spend range from anywhere from 4% upwards to 9% plus. So it looks like the consumer is ready to spend. As we know, the consumer in the US is very resilient, and they are definitely going to look to take advantage of maybe the holiday season here. That type of anticipation gives us confidence that this road that we are on continues to be resilient. We clearly see the traffic being a leading indicator for the consumer continuing to gravitate towards Kimco shopping centers. That being said, we recognize all the macro issues that are up there that you talked about, that we see daily. So we are evaluating next year already. We are rolling up our budgets.

Speaker #14: Sure, I'm happy to start. Look, coming into the holiday season, it seems like most of the numbers that are projected for the holiday spend range from anywhere from 4% upwards to 9-plus percent.

Speaker #14: So it looks like the consumer is ready to spend. As we know, like, the consumer in the U.S. is, is very resilient, and they are definitely going to look to take advantage of maybe the holiday season here.

Speaker #14: So that type of anticipation gives us confidence that this, this, this road that we're on continues to be resilient. We clearly see the traffic being a leading indicator for the consumer continuing to gravitate towards KIMCO shopping centers.

Conor Flynn: That type of anticipation gives us confidence that this road that we are on continues to be resilient. We clearly see the traffic being a leading indicator for the consumer continuing to gravitate towards Kimco shopping centers. That being said, we recognize all the macro issues that are up there that you talked about, that we see daily. So we are evaluating next year already. We are rolling up our budgets.

Speaker #14: That being said, we recognize all the macro issues that are up there that you talked about. That we see daily. And so, you know, we're, we're, we're evaluating next year already.

Speaker #14: We're rolling up our budgets. We're trying to get to a point where we feel confident in showcasing that the trajectory that KIMCO has been on.

Conor Flynn: We are trying to get to a point where we feel confident in showcasing the trajectory that Kimco has been on. We have been the only shopping center REIT to produce 5% plus growth the last few years and want to continue on that track record of being really that steady eddy that can produce, regardless of the cycle, produce growth. The shopper, when you think about the needs, the essential goods and services that we provide, we feel like even if there is a bit of a pullback or a stress point, the consumer will still be buying groceries. The consumer will still be going to the essential goods and services that we provide. So we feel like with the pipeline, the SNO pipeline, the future growth that is just coming online, we continue to have a pretty wide buffer in terms of trajectory going forward.

Speaker #14: We've been the only shopping center REIT to produce 5% plus growth the last few years and want to continue on that track record of being really that steady eddy that can produce regardless of the cycle, produce growth.

Conor Flynn: The shopper, when you think about the needs, the essential goods and services that we provide, we feel like even if there is a bit of a pullback or a stress point, the consumer will still be buying groceries. The consumer will still be going to the essential goods and services that we provide. So we feel like with the pipeline, the SNO pipeline, the future growth that is just coming online, we continue to have a pretty wide buffer in terms of trajectory going forward.

Speaker #14: And, you know, the shopper, when you think about, you know, the needs, the essential goods and services that we provide, we feel like even if there is a bit of a pullback or a stress point, the consumer will still be buying groceries.

Speaker #14: The consumer will still be going to the essential goods and services that we provide. And so we feel like with the pipeline, the Snow pipeline, you know, the future growth that is just coming online, we continue to have a pretty wide buffer in terms of trajectory going forward.

[Company Representative] (Kimco Realty): I would just layer on the credit loss aspect of your question. We have been consistently below 60 basis points. We are definitely seeing the quality of the tenants through that number, as well as the significant effort we have made on the billing and collection efforts with our lease administration reorg that we did about a year ago. So all of those are leading towards that lower credit loss, that way we are seeing positive results.

Speaker #11: And I would just layer on, on the credit loss aspect of your question. You know, we've been consistently below that 60 basis points, and we're definitely seeing the quality of the tenants through that number.

Speaker #11: As well as the significant effort we've made on the billing and collection efforts with our lease administration reorg that we did about a year ago.

Speaker #11: So all of those are leading towards that lower credit loss that we're seeing positive results.

Conor Flynn: Yeah. The only thing I would add is, I made a comment to our team, as we were sitting here, that when I look at our tenant watch list, it is the smallest watch list I have ever seen in the period we have been doing this stuff. So things happen in retail, but right now when you look at it, you have seen bankruptcies have been incredibly slow for this year. The retailers themselves have fortified their own balance sheets. So we just do not see a lot of bankruptcy activity coming. With all the things that the others have mentioned, it just gives us a lot of confidence about how the tenants are paying and how we are collecting.

Speaker #13: Yeah, the only, the only thing I would add is, you know, I made a comment to our team as we were sitting here that when I look at our, our tenant watchlist, I mean, it is the smallest watchlist you know, I've ever seen in, you know, in the period we've been doing this stuff.

Speaker #13: So, things happen in retail, but, you know, right now when you look at it, I mean, you've seen bankruptcies have been incredibly slow for, you know, for this year.

Speaker #13: The, the retailers themselves have, you know, fortified their own balance sheets. So, there's just, we just don't see a lot of bankruptcy activity coming.

Speaker #13: And with all the things that the others have mentioned, it just gives us a lot of confidence about, you know, how the tenants are paying and how we're collecting.

Operator: Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Juan Sanabria with BMO Capital Markets. Your line is open. Please go ahead.

Juan Sanabria: Hi, good morning, and thanks for the time. Just a macro question following up on Jamie's in the prior question. Just given the supply-demand dynamic and the fact that it is probably harder for new supply to pounce on, just curious how market rents are trending. Is that accelerating or is it moderating in any form, just given some of the aforementioned strains on the consumer? Just curious on how market rents are trending. Thanks.

Speaker #15: Hi, good morning, and thanks for the time. Just a macro question following up on Jamie's and the prior question. Just given the supply-demand dynamic and the fact that it's probably harder for new supply to pencil.

Speaker #15: Just curious how market rents are trending. Is that accelerating or is it moderating in any form, just given some of the aforementioned strains on the consumer?

Speaker #15: Just curious on how market rents are trending. Thanks.

Speaker #14: Yeah, it's a good question. I think market rents are very much a local game. When you look at sort of the Kimco strategy of first-ring suburbs, major metro markets, you know, we continue to see that there's virtually no supply coming online.

Conor Flynn: Yeah, it is a good question. I think market rents are very much a local game. When you look at sort of the Kimco strategy of first-ring suburbs, major metro markets, we continue to see that there is virtually no supply coming online. When you think about where there is potential for new supply or a handful of new developments, it is in those second or third ring areas that really do not compete with the Kimco portfolio, where you have seen sprawl and where you have seen new household formations occur. We continue to monitor new market by market, and continue to see where there is accelerating market rent growth. Actually, where our two acquisitions are coming online, in the next few days, there is significant market rent growth in that trade area that we really like. That is one of the leading indicators that we continue to watch and see.

Speaker #14: And when you think about where there is potential for new supply or a handful of new developments, it's in those second or third ring areas that really don't compete with the Kimco portfolio, where you've seen sprawl and where you've seen new household formations occur.

Conor Flynn: We continue to monitor new market by market, and continue to see where there is accelerating market rent growth. Actually, where our two acquisitions are coming online, in the next few days, there is significant market rent growth in that trade area that we really like. That is one of the leading indicators that we continue to watch and see.

Speaker #14: So we continue to monitor market by market. And continue to see where there's accelerating market rent growth. And actually, you know, where our 2 acquisitions are coming online in the next few days, there's significant market rent growth in that trade area that we really like.

Speaker #14: And so that's one of the leading indicators that we continue to watch and see. Yeah, and then like when you look at just our, when you look at our,

Dave Jamieson: Yeah, and then when you look at our mark-to-market adjustments, like on the new lease, that is where you see the big upside, right? We are hitting 20%, 30%, 40% on the new lease spreads right now, and that is where you are seeing a meaningful gain. As we get those boxes back, we can clearly see that more meaningful material lift than just sort of the annual mark-to-market adjustment on the top side of rents. When we look ahead into 2027, and we have 56 anchor boxes that are rolling with no options, we are already seeing mark-to-market spreads upwards 40% on those that are resolved. We are seeing a lot of opportunity there to continue to push northward, which will only help further fuel our future growth.

Speaker #12: our mark-to-market adjustments, like on the new lease, I mean, that's where you see the big, big upside, right? I mean, we're hitting, you know, 20%, 30%, 40% on the new lease spreads right now, and that's where you're seeing a meaningful gain.

Speaker #12: So, as we get those boxes back, we can clearly see that, that more meaningful material lift than just sort of the annual mark-to-market adjustment on the top side of rents.

Speaker #12: When we look ahead into '27 and we have 56 anchor boxes that are rolling with no options, we're already seeing mark-to-market spreads upwards of 40% on those that are resolved.

Speaker #12: So, we're seeing a lot of opportunity there to continue to push northward, which will only help, you know, further fuel our future growth.

Conor Flynn: The other piece of upside to market rent growth is our omni-channel retailers that utilize their stores. Even some of the conversations that we have been having with some of our retailers are thinking long and hard about where to place their stores as distribution points to enhance the offering to their consumer. We continue to think that that halo will allow us to push occupancy costs, to push rents even higher.

Speaker #14: The other piece of upside to market rent growth is our omnichannel retailers that utilize their stores. Even some of the conversations that we've been having with some of our retailers are thinking long and hard about where to place their stores as distribution points to enhance the, the offering to their consumer.

Speaker #14: And we continue to think that that halo will allow us to push occupancy costs, to push rents even higher.

Operator: Your next question comes from the line of Greg McGinniss with Scotiabank. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Greg McGinnis with Scotiabank. Your line is open. Please go ahead.

Greg McGinniss: Hey, good morning. Looking ahead, transactions in 2027, maybe, can you just remind us what remains from a disposition funding perspective for multifamily ground lease lower growth centers? Given the continued competitive pricing you talked about, more capital looking to invest and product available, do you actually expect cap rates to move much over the next few quarters? Have there been any early indications of that shift? Alternatively, might share buybacks just become a bigger focus given Kimco Realty's implied cap rate above where similar quality properties are currently priced?

Speaker #6: Hey, good morning. Looking ahead, transactions in 2027, maybe, can you just remind us what remains from a disposition funding perspective for multifamily, ground lease, lower-growth centers?

Speaker #6: And given the continued competitive pricing, you talked about more capital looking to invest and product available, do you actually expect cap rates to move much over the next few quarters?

Speaker #6: Have there been any early indications of that shift? And, alternatively, might share buybacks just become a bigger focus given Kimco's implied cap rate is above where similar quality properties are currently priced?

Dave Jamieson: Sure. We are happy to give some color, but we will be coming out with more specific volume guidance, obviously on the next call. Our plan of capital recycling was not just a 2026 plan. It was a 2027 and beyond plan. We believe that we have enough product within our portfolio that we can continue to recycle it creatively. We are still upwards of 8%+ of our ABR in these long-term ground leases, and we have continued to replenish that as we have done new leases with some of these retailers. There were some low-hanging fruit that we took advantage of this year, and we were able to capitalize on some very aggressive cap rates.

Speaker #6: Sure. Yeah, we're happy to give, you know, some, some color, but we'll be coming out with more specific volume guidance obviously on the next call.

Speaker #6: But our plan of capital recycling was not just a 2026 plan, it was a 2027 and beyond plan. And we believe that we have enough product within our portfolio that we can continue to recycle accretively.

Speaker #6: We're still upwards of 8% plus of our ABR in these long-term ground leases. And we've continued to replenish that as we've done new leases with some of these retailers.

Speaker #6: So there were some low-hanging fruit that we took advantage of this year and we're able to capitalize on some very aggressive cap rates. I think the important factor, even if cap rates do move a bit on the single-tenant product, because that is arguably more interest rate sensitive than multi-tenant shopping centers with growth.

Dave Jamieson: I think the important factor, even if cap rates do move a bit on the single-tenant product, because that is arguably more interest rate sensitive than multi-tenant shopping centers with growth, that we can still maintain that spread and that growth profile on the reinvestment. Now, whether that comes in the form of new core acquisitions, to your point, we will continue to monitor where we are trading and where the market is trading. We see a meaningful valuation gap still, which is what sort of enabled us or prompted us to buy back over $150 million of stock in Q3. So we will continue to focus on capital allocation and reinvestment.

Speaker #6: that we can still maintain that spread and that growth profile on the reinvestment. Now, whether that comes in the form of new core acquisitions, to your point, we'll continue to monitor where we're trading and where the market is trading.

Speaker #6: We see a meaningful valuation gap still, which is what sort of enabled us or prompted us to buy back over $150 million of stock in the 3rd quarter.

Speaker #6: So, we'll continue to focus on capital allocation and reinvestment. On the multifamily side, even with the sale of the Milton and the Whitmer, we still have upwards of 14,000 units.

Dave Jamieson: On the multifamily side, even with the sale of The Milton and The Witmer, we still have upwards of 14,000 units either built, under construction, or where we are entitled that has value if we decide that we want to sell it before the development occurs. So we will continue to monitor our existing multifamily program. We have over 3,000 projects that are already open and operating today, that at the appropriate time and the appropriate pricing, we can look to monetize and crystallize that value.

Speaker #6: Either built, under construction, or where we're entitled that has value if we decide that we want to sell it before the development occurs. So we will continue to monitor.

Speaker #6: our existing multifamily program. We have over 3,000 projects that are already open and operating today that at the appropriate time and the appropriate pricing, we can look to monetize and crystallize that value.

Ross Cooper: I think the beauty of it is that the timing and the control is within our own control. So it is intended to be utilized as currency and opportunistic. When we see those windows where we can get more aggressive pricing and reinvest, that is when we will capitalize it, like we did on The Witmer and The Milton. But it is at our election, and we have the flexibility to time that accordingly.

Dave Jamieson: I think the beauty of it is that the timing and the control is within our own control. So it is intended to be utilized as currency and opportunistic. When we see those windows where we can get more aggressive pricing and reinvest, that is when we will capitalize it, like we did on The Witmer and The Milton. But it is at our election, and we have the flexibility to time that accordingly.

Speaker #6: I think the beauty of it is that the timing and the control is, is within our own control. So it is intended to be utilized as currency and opportunistic.

Speaker #6: And when we see those windows where we can get more aggressive pricing and reinvest, that's when we'll capitalize it like we did on the Whitmer and the Milton.

Speaker #6: But it's at our election, and we have the flexibility to time that accordingly. The only thing I'd add on the buyback is,

Dave Jamieson: The only thing I would add on the buyback is, clearly the balance sheet is in the best shape it has ever been. When you look at our leverage levels, that gives us tremendous capacity to continue to, when we see an opportunistic time to buy back our shares, we are going to be able to do it because of the leverage levels we are at. That is a lever that we continue to see as an opportunistic one, where if we can sell assets and showcase that spread that we can crystallize, that is a no-brainer in terms of capital allocation for us, and we will continue to do that.

Conor Flynn: The only thing I would add on the buyback is, clearly the balance sheet is in the best shape it has ever been. When you look at our leverage levels, that gives us tremendous capacity to continue to, when we see an opportunistic time to buy back our shares, we are going to be able to do it because of the leverage levels we are at. That is a lever that we continue to see as an opportunistic one, where if we can sell assets and showcase that spread that we can crystallize, that is a no-brainer in terms of capital allocation for us, and we will continue to do that.

Speaker #14: Clearly, the balance sheet is in the best shape it's ever been. When you look at our leverage levels, that gives us tremendous capacity to continue to— when we see an opportunistic time to buy back our shares, we're going to be able to do it because of the leverage levels we're at.

Speaker #14: And so that's a lever that we continue to see as an opportunistic one, where if we can sell assets and showcase that spread that we can crystallize, that's a no-brainer in terms of capital allocation for us, and we'll continue to do that.

Operator: Your next question comes to the line of Floris van Dijkum with Ladenburg Thalmann. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Floris Van Dijkum with Ladenburg Dahlem. Your line is open. Please go ahead.

Floris van Dijkum: Hey, guys. Love the updates on capital recycling. One of my other topics which caught my attention is the improvement of margins. Maybe if you could remind us where you are today in your fixed CAM initiative, what percentage of rents have fixed CAM in them today? Presumably all of your new leases have fixed CAM provisions included in them. How quickly do you see that growing going forward? The other part of that question is your ancillary income, and maybe touch upon what you are doing in terms of your billboard charging, your temp tenancy, and other revenue sources, and how much more can that grow in your opinion?

Speaker #14: Hey guys, love the updates on capital recycling. One of my other topics which caught my attention is the improvement of margins. And maybe if you could remind us where you are today in your fixed CAM initiative, what percentage of rents have fixed CAM in them today?

Speaker #14: Presumably, all of your new leases have fixed CAM provisions included in them. And so, where do you— how quickly do you see that growing?

Speaker #14: Going forward? And then the, the other part of that question is your ancillary income. And maybe touch upon what you're doing in terms of your billboard charging, your temp tenancy and other revenue sources, and how much more can that grow in your opinion?

Speaker #13: All right. So I'll start, and then I'll pass it to David for some of it. The margins exceeding 70%—again, it’s driven partially by the things you’re seeing us do, right?

Glenn Cohen: All right. I will start, and then I will pass it to David for some of it. The margin is exceeding 70%. Again, it is driven partially by the things you are seeing us do, right? Credit loss is better. That helps. Occupancy is higher. That helps. The leasing and the economic leasing is higher. Those are all building into that NOI number. Cost containment at the property level is a driver. We are constantly looking at ways to reduce our real estate taxes, certiorari work that we are doing, just to drive those costs down. It kind of minimizes the leakage that happens. When you put all of that together, it is just driving the margin higher from where it was.

Speaker #13: Credit loss is better. That helps. Occupancy is higher. That helps. The leasing and the economic leasing is higher. Those are all building into that NOI number.

Speaker #13: Cost containment at the property level is a driver. We're constantly looking at ways to reduce our, you know, our real estate taxes, social work.

Speaker #13: that we're doing just to drive those costs down. It kind of minimizes leakage that happens. So when you put all of that together, it's driving— it's just driving the margin higher from where it was.

Dave Jamieson: Yeah. On the fixed CAM conversions, I will throw out a few stats. Starting first with the entire portfolio, we are just over 50%, around 51%. It is important to note, though, obviously the conversion is driven by one, when leases come due. If leases are not coming due, it is a little more challenging to convert to lease new signings relative to the total population. As leases sign, you convert them. Then three, when you own properties. We tend to like to hold and operate a property for a couple of years to build some operating history behind us before we look at a conversion that we feel is a reasonable number that we then sign new leases with and renewals with.

Speaker #12: Yeah. And then on the fixed CAM conversions, so I'll throw out a few stats. So starting first with the entire portfolio, we're just over 50%, around 51%.

Speaker #12: It's important to note, though, obviously, the conversion is driven by, one, you know, when leases come due. So, so if leases aren't coming due, it's a little more challenging to convert.

Speaker #12: 2, you know, lease new signings relative to the total population. So as leases sign, you convert them. And then 3, when you own properties.

Speaker #12: So, we tend to like to hold and operate a property for a couple of years to build some operating history behind us before we look at a conversion that we feel is a reasonable number, that we then sign new leases with and renewals with.

Dave Jamieson: From that 51%, if you just look at the Kimco legacy, those that we have really owned and operated for an extended period of time, we are over 70%, almost 70% converted on fixed CAM. When you look at new lease conversions, we are just around 90%-plus for new deals. It is more or less all the new deals that you do. On the renewal side too, we see the opportunity, obviously convert over to fixed CAM. From the outset, it was always a program to drive efficiency and gains on both sides of the house, of which I think it is more than achieved that, and that also helps on the collection side, and flows through the margin and the numbers.

Speaker #12: So then, from that 51%, if you just look at the Kimco legacy, those that we really own and operate for an extended period of time, we're over 70%, almost 70% converted on fixed CAM.

Speaker #12: And then, when you look at new lease conversions, we're just around 90-plus percent for new deals. So, it's in more or less all the new deals that you do.

Speaker #12: And then, on the renewal side, too, we see the opportunity, obviously, to convert over to fixed CAM. From the outset, it was always a program to drive efficiency and gains on both sides of the house, of which I think it's more than achieved that, and that also helps on the collection side.

Speaker #12: And flows through the margin and the numbers.

Operator: Your next question comes to the line of Samir Khanal with Bank of America. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Sameer Kunal with Bank of America. Your line is open. Please go ahead.

Samir Khanal: Good morning, everybody. I guess, Conor, just maybe broadly speaking, given the strength we see in leasing spreads, quarter after quarter, are you seeing evidence that the tenants are becoming more selective on economics given that they are certainly feeling the cost pressures? You hear that on their earnings calls. So curious what you are hearing on the ground from your retailers.

Speaker #13: Good morning, everybody. I guess, Conor, just maybe broadly speaking, I mean, given the strength we see in leasing spreads, right, quarter after quarter, are you seeing evidence that the tenants are becoming more sort of selective on economics?

Speaker #16: Given that they are certainly feeling the cost pressures, right? I mean, you hear that on their earnings calls. So curious kind of what you're hearing on the ground from your retailers.

Conor Flynn: Obviously every deal is a little bit unique and bespoke. It is very clear that the store is becoming more profitable as retailers have evolved their strategy to utilizing the store for more than just the four-wall sales. I think that is what is really starting to showcase, is they are being thoughtful about how they service their customer in more ways than one. They are reinvesting in their store fleets. They are continuing to look to see how they can better serve their customer. In a lot of ways, the expansion of stores is the key for them. They have already built the e-commerce platform, and how they go about distributing it in a more effective and cost-efficient way is really the key, and that is the store base.

Speaker #14: You know, obviously every deal is a little bit unique and bespoke, but it's very clear that the store is becoming more profitable as retailers have evolved their strategy.

Speaker #14: ...to utilizing the store for more than just the four-wall sales. And I think that's what's really starting to showcase—they're being thoughtful about how they service their customer in more ways than one.

Speaker #14: They're reinvesting in their store fleets. They're continuing to look to see how they can better serve their customer. And in a lot of ways, you know, the expansion of stores is the key for them.

Speaker #14: Like, they have already built the e-commerce platform. And how they go about distributing it in a more effective and cost-efficient way is really the key, and that's the store base.

Conor Flynn: And so you are seeing it continue to show up when the economics, as Dave talked about, we have been trying to push economics for a long time at Kimco, and in many years, the retailer has had the upper hand. That is no longer the case. It is very clear it is a very tight supply. We have multiple tenants bidding on the same space, and we can dictate terms and dictate things that we have not been able to achieve before, which is great because you can pick and choose who you want to remerchandise the center with, all while getting better economics and better growth for the future.

Speaker #14: And so you're seeing it continue to show up when the economics, as Dave talked about, we've been trying to push economics for a long time at Kimco.

Speaker #14: And in many, you know, years, the retailer has had the upper hand. That is no longer the case. It is very clear, it's a very tight supply.

Speaker #14: We have multiple tenants bidding on the same space, and we can dictate terms and dictate things that we haven't been able to achieve before.

Speaker #14: Which is great because you can pick and choose who you want to remerchandise the center with, all while getting better economics and better growth for the future.

Operator: Your next question comes to the line of Omotayo Okusanya with Deutsche Bank. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Amakayo Okusanya with Deutsche Bank. Your line is open. Please go ahead.

Speaker #15: Hi, yes, good morning. Again, congrats on the quarter and really solid execution on that front. I wondered if you could talk a little bit about the sources and uses of capital as we round out the rest of the year.

Omotayo Okusanya: Hi. Yes, good morning. Again, congrats on the quarter and really solid execution on that front. Wondering if you could talk a little bit about the sources and uses of capital as we round out the rest of the year. Specifically, again, you have about $545 million in cash, but you did pay down the notes of $500 million. You have this acquisition pipeline that is coming that you are going to be closing on in a couple of days. Just wanted to make sure we are clear on sources and uses as we think about the rest of the year.

Speaker #15: And specifically, again, it's— you have about $545 million in cash, but you did pay down the notes

Speaker #10: So it's like $500 million. You have this acquisition pipeline that's coming up that you're going to be closing on in a couple of days.

Speaker #10: Just want to kind of make sure we're kind of clear on sources and uses as we kind of think about the rest of the year.

Glenn Cohen: Yeah. Again, you hit on most of the points. We did have $545 million of cash to end the quarter. We did have a $500 million bond that we just paid off. So obviously that cash was used to take care of that debt. There is one small piece of debt that remains. It is about $7 million. It is an old MTN from when we acquired Weingarten, but it has got a 6.5% interest rate handle on it, so we will use it for that. As Ross mentioned, we have two sizable acquisitions that we are very close to completing. Then with that, we still have some structured investment program potential investments to make as well. So that is where the capital is focused right now. Then we will see. Again, as we talked about, we have a lot of capacity on our debt metric side. We will see where the stock price is.

Speaker #13: Yeah. I mean, again, you kind of hit on most of the points. We did have $545 million of cash to end the quarter. We did have a $500 million bond that we just paid off.

Speaker #13: So, obviously, the process was that cash was used to take care of that debt. There's one small piece of debt that remains; it's about $7 million.

Speaker #13: It's an old MTN from when we acquired Weingarten, but it's got like a 6.5% interest rate handle on it. So we'll use it for that.

Glenn Cohen: As Ross mentioned, we have two sizable acquisitions that we are very close to completing. Then with that, we still have some structured investment program potential investments to make as well. So that is where the capital is focused right now. Then we will see. Again, as we talked about, we have a lot of capacity on our debt metric side. We will see where the stock price is. We are going to continue to watch and try and be really good capital allocators and take advantage of whichever market is presented to us.

Speaker #13: And as Ross mentioned, we have 2 sizable acquisitions that we're very close to completing. And then with that, we still have some structured investment program potential investments to make as well.

Speaker #13: So that's where the capital is focused right now. And then we'll see, you know, again, as we talked about, we have a lot of capacity.

Speaker #13: For on our debts, on our debt metrics side, you know, we'll see where the stock price is. You know, we're going to continue to watch and try and be really good capital allocators and you know, take advantage of whichever markets presented to us.

Glenn Cohen: We are going to continue to watch and try and be really good capital allocators and take advantage of whichever market is presented to us.

Dave Jamieson: We have nothing outstanding on our line of credit.

Speaker #14: We have nothing outstanding on our line of credit. No, we have the commercial paper program that we just implemented that we have a lot of capacity on.

Glenn Cohen: No.

Dave Jamieson: We have the commercial paper program that we just implemented, that we have a lot of capacity on. When you think about the sources, there is a lot of capacity on the balance sheet side because we have never been at 5x net debt to EBITDA before. So exciting times.

Speaker #14: So when you think about the sources, there's, there's a lot of capacity on the balance sheet side because we've never been at 5 times net debt to EBITDA before.

Speaker #14: So Exciting times.

Operator: Your next question comes to the line of Caitlin Burrows with Goldman Sachs. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Caitlin Burrows with Goldman Sachs. Your line is open. Please go ahead.

Caitlin Burrows: Hi. Good morning, everyone. I have two questions on guidance, one more specific, one more bigger picture. Just the quick ones, I am wondering what drove the uptick in lease termination fees. Separately, you mentioned in the prepared remarks that I think you are realizing $34 million of commencements this year, which is 20% above your original expectation. I was wondering, as you think about the confidence you have, if you think you will modify your guidance methodology going forward at all, and has your ability to open space more quickly gotten so good that you are more comfortable changing that base case assumption or not so much? Thanks.

Speaker #6: Hi. Good morning, everyone. I have two questions on guidance, one more specific and one bigger picture. Just some quick ones: I'm wondering what drove the uptick in lease termination fees.

Speaker #6: And then separately, you mentioned in the prepared remarks that I think you're realizing $34 million of commencements this year, which is 20% above your original expectation.

Speaker #6: So I was wondering, as you think about like the confidence you have, if you think you'll modify your guidance methodology going forward at all.

Speaker #14: And like, has your ability to open space more quickly gotten so good that you're more comfortable changing that base case assumption or not so much?

Speaker #14: Thanks.

Glenn Cohen: Go ahead.

Dave Jamieson: Yes. On the lease termination side, it was just normal course of business stuff. It just happened to hit this quarter versus when it could have hit at a subsequent quarter. So nothing really major there to look through. On the SNO pipeline, it is a great question. When you drill into the detail, it is a lot of singles and doubles that help achieve this 20% overage. If you are accelerating over several hundred projects, if you are pulling forward projects one week, two weeks, maybe 30 days here and there, while some might slide, net-net, the gain is obviously material once you sum it all up. It is a direct impact to One Kimco and a direct impact to the effort of the development of the construction team and how well they are aligned, both internally and with our retail partners.

Speaker #12: Yes, on the lease termination side, it was just normal course of business stuff. Yeah. And it just happened to hit this quarter versus, you know, when it could have hit at a subsequent quarter.

Speaker #12: So nothing really major there to look through. On the snow pipeline, it's a great question. And when you look, when you drill into the detail, it's a lot of singles and doubles, you know, that help achieve this 20% overage.

Speaker #12: So, you know, if you're accelerating, you know, over several hundred projects, if you're pulling forward projects, you know, 1 week, 2 weeks, maybe 30 days here and there, while some might slide.

Dave Jamieson: If you are accelerating over several hundred projects, if you are pulling forward projects one week, two weeks, maybe 30 days here and there, while some might slide, net-net, the gain is obviously material once you sum it all up. It is a direct impact to One Kimco and a direct impact to the effort of the development of the construction team and how well they are aligned, both internally and with our retail partners.

Speaker #12: Net-net, the gain is obviously material once you sum it all up. And it's a direct impact to one, KIMCO, and a direct impact to the effort of the development and the construction team and how well they are aligned both internally and with our retail partners.

Dave Jamieson: When we sign a lease, if we sign package leases with retailers, our head of development then meets with their head of construction, and they get aligned on what the scope and body of work that is required to open the space, in multiple spaces across the country. Although the local teams are executing every single day to get this done, they are there to help triage and get out in front of any issues that may arise that help pull forward these RCD dates. It is painstaking work. It is a real grind, but our relationships, due to our scale, has really benefited our team and ultimately the retailer's objectives to get through the permitting process, work through utilities and municipalities on rezoning and entitlements. So it is a ton of blocking and tackling. It is One Kimco at its core, and that is what has resulted in the outperformance here.

Speaker #12: When we sign a lease, and we sign package leases with retailers, our head of development then meets with their head of construction, and they get aligned on what the scope and body of work that's required to open the space—in multiple spaces across the country.

Speaker #12: And although the local teams are executing every single day to get this done, they're there to help triage and get in front of any issues that may arise that help pull forward these RCD dates.

Speaker #12: It is painstaking work. It's a real grind, but our relationships due to our scale has really benefited our team and ultimately the retailer's objectives to get through the permitting process, work through utilities and municipalities on rezoning and entitlements.

Dave Jamieson: So it is a ton of blocking and tackling. It is One Kimco at its core, and that is what has resulted in the outperformance here. And on a go-forward with 2027, we scrutinize all of our budgets and all of our plans. We have been going through that process, obviously, and we will release guidance, but we have always incorporated this activity into it.

Speaker #12: So it is, it is a ton of blocking and tackling. It's one KIMCO at its core, and that's what's resulted in the outperformance here.

Dave Jamieson: And on a go-forward with 2027, we scrutinize all of our budgets and all of our plans. We have been going through that process, obviously, and we will release guidance, but we have always incorporated this activity into it.

Speaker #12: And on a go-forward with '27, We scrutinize all of our budgets and all of our plans. We've been going through that process, obviously, and we'll release guidance, but we've always incorporated this activity into it.

Operator: Your next question comes to the line of Craig Mailman with Citi. Your line is open. Please go ahead.

Speaker #8: Your next question comes to the line of Craig Mailman with Citi. Your line is open. Please go ahead.

Craig Mailman: Hey, good morning. Just want to follow up on One Kimco. I know you guys have mentioned it a bunch this morning, and it is a big initiative for you. I am just curious where we are in the life cycle of this initiative in terms of seeing the fruits of the labor and also where you are in the expense associated with this. And as you look forward, how much of it is the G&A savings and some of these other efficiencies of getting spaces open on time versus some of the AI investments and other initiatives driving pure revenue?

Speaker #9: Hey, good morning. Just want to follow up on One KIMCO. I know you guys have mentioned it a bunch this morning and it's a big initiative for you.

Speaker #9: I'm just kind of curious where we are in the lifecycle of this initiative in terms of kind of seeing the fruits of the labor and also where you are in sort of the

Speaker #10: expense associated with this. And just as you look forward, you know, how much of it is this, the G&A savings and, you know,

Speaker #9: some of these other efficiencies of getting spaces open on time versus maybe some of the AI investments and other initiatives kind of driving pure revenue?

Dave Jamieson: Yeah, it is a great and loaded question. I will break it down in simplest forms, and then I will pass it over to Will to fill in some of the detail. We hosted an event, obviously, earlier or later this summer, launching One Kimco that we launched in July. I like to say we are in the third inning because we have posted some early wins to the board, but there is a lot of work ahead of us, and we are seeing a lot of real promise and opportunity as we continue to transform how we operate. One Kimco is simply put, it is the alignment of the entire organization to execute more efficiency and cleaner, and it impacts both our people, the process, and the platform that we have deployed.

Speaker #12: Yeah, it's a great and loaded question, so I'll break it down in simplest form, and then I'll pass it over to Will to fill in some of the detail.

Speaker #12: We hosted an event obviously earlier or later this summer launching One KIMCO that we launched in July. I like to say we're in, we're in the 3rd inning because we posted some, some early wins.

Speaker #12: to the board, but there, there's a lot of work ahead of us and we're seeing a lot of real promise and opportunity as, as we continue to transform how we operate.

Speaker #12: One KIMCO is, is simply put, it's the alignment of the entire organization to execute more efficiently and cleaner. And it impacts both, you know, our people, the process, and the platform that we've deployed.

Dave Jamieson: Looking at each of the individual workflows of how do we modernize, how we get the job done every single day, and how AI or other tools can be a complement to that, breaking through those bottlenecks that have historically constrained some of the optimization that we are looking to do. When we looked at year landings from the cycle time, using that as a simple KPI on what we can control within the lease itself, those aspects that are within our control before it gets back to the tenant, we have seen a 30% improvement quarter over quarter. Obviously, that is 90 days of work, but it is a benchmark that we will continue to try to meet and exceed on a go-forward basis. We are setting ambitious targets for ourselves so that we continue to keep the eye on the ball and find a way forward.

Speaker #12: Looking at, you know, each of the individual workflows of how do we modernize, you know, how we get the job done every single day and how AI or other tools can be a complement to that.

Speaker #12: And breaking through those bottlenecks that have historically constrained some of the optimization that we're looking to do. And so when we looked at the early innings from the cycle time, you know, using that as a simple KPI on what we can control within the lease itself.

Speaker #12: So those, those aspects that are within our control before it gets back to the tenant, we've seen a 30% improvement quarter over quarter. Obviously that's 90 days of work, but it's a benchmark that we'll continue to try to meet and exceed, you know, on a go-forward basis.

Dave Jamieson: Obviously, that is 90 days of work, but it is a benchmark that we will continue to try to meet and exceed on a go-forward basis. We are setting ambitious targets for ourselves so that we continue to keep the eye on the ball and find a way forward. All of this translates to the bottom line. Our core metrics, same site NOI and FFO, are our key focus. Anything that we do to invest or modernize the workforce and how we work all translates ultimately to those two key financial metrics. We are starting to see that play out.

Speaker #12: So we're setting ambitious targets for ourselves. So that we continue to keep the eye on the ball and find a way forward. All of this translates to the bottom line.

Dave Jamieson: All of this translates to the bottom line. Our core metrics, same site NOI and FFO, are our key focus. Anything that we do to invest or modernize the workforce and how we work all translates ultimately to those two key financial metrics. We are starting to see that play out. I mentioned the SNO pipeline already. That has been a clear benefit. Obviously, Will mentioned earlier this year some of the direct AI savings that we have seen. Then I was just mentioning the KPI and the cycle time for what we can control. We are seeing real tangible results already. With that, Will, do you have anything else you want to share?

Speaker #12: Our core metrics, same-site NOI and FFO, are our key focus. So anything that we do to invest or modernize the workforce and how we work all translates ultimately to that, to those 2 key financial metrics.

Speaker #12: And we're starting to see that play out. I mentioned the Snow Pipeline already. That's been a clear benefit. Obviously, Will mentioned earlier this year some of the direct AI savings that we've seen.

Dave Jamieson: I mentioned the SNO pipeline already. That has been a clear benefit. Obviously, Will mentioned earlier this year some of the direct AI savings that we have seen. Then I was just mentioning the KPI and the cycle time for what we can control. We are seeing real tangible results already. With that, Will, do you have anything else you want to share?

Speaker #12: And then I was just mentioning the KPI on the cycle time for what we can control. So we're seeing real tangible results already. With that, Will, do you have anything else you want to share?

Will Teichman: Sure. As Dave said, One Kimco is really an operating model. It is not a capital investment program. It is really focused on transforming the way we operate. As Glenn mentioned in his prepared remarks, we have had a significant improvement in our headline operating leverage metric, which is measured as the ratio of G&A to revenue, and it improved by over 28% over the last six years. That really comes through two things, accelerating revenue at over 10% while we are bending the G&A curve down at a growth rate of between 5% and 6%. From a technology perspective, obviously, that is one component where we are investing to deliver this transformation. It is not the only area. For every investment that we make from a tech perspective, we are measuring it against the goal of continuing to bend that curve downward as we accelerate revenue.

Speaker #9: Sure. You know, as Dave said,

Speaker #6: One, KIMCO is really an operating model. It's not a capital investment program, and it's really focused on transforming the way we operate.

Speaker #9: As Glenn mentioned in his prepared remarks, we have had a significant improvement in our headline operating leverage metric, which is measured as the ratio of G&A to revenue.

Speaker #6: And have improved by over 28% over the last 6 years.

Will Teichman: That really comes through two things, accelerating revenue at over 10% while we are bending the G&A curve down at a growth rate of between 5% and 6%. From a technology perspective, obviously, that is one component where we are investing to deliver this transformation. It is not the only area. For every investment that we make from a tech perspective, we are measuring it against the goal of continuing to bend that curve downward as we accelerate revenue.

Speaker #9: That really comes through 2 things: accelerating revenue at over 10% while we're bending the G&A curve down between 5— at a growth rate of between 5% and 6%.

Speaker #9: From a technology perspective, obviously that is one component where we're investing to deliver this transformation. It's not the only area. But for every investment that we make from a tech perspective, we're measuring it against the goal of continuing to bend that curve downward as we accelerate revenue.

Will Teichman: There are some initiatives that are pure play revenue growth focused, and there are others that are focused on lowering our overhead and creating more efficiencies from an expense perspective. A lot of that capability has actually been funded through vendor consolidation. We are harnessing efficiencies to help fund incremental investments in technology. As Dave alluded to, we have already, I think, been one of a few companies out in front talking about some of the real value that we are generating from our AI investments. Last quarter, we talked about some of the professional services savings that we are seeing. This quarter, we launched three additional initiatives, one of which is a natural language leasing search on our website that is driving improved lead inbound, qualified lead inbound to our leasing team.

Speaker #9: So there are some initiatives that are pure-play revenue growth-focused, and there are others that are focused on lowering our overhead and creating more efficiencies from an expense perspective.

Speaker #9: A lot of that capability has actually been funded through vendor consolidation. So we're harnessing efficiencies to help fund incremental investments in technology.

Will Teichman: As Dave alluded to, we have already, I think, been one of a few companies out in front talking about some of the real value that we are generating from our AI investments. Last quarter, we talked about some of the professional services savings that we are seeing. This quarter, we launched three additional initiatives, one of which is a natural language leasing search on our website that is driving improved lead inbound, qualified lead inbound to our leasing team.

Speaker #9: And as Dave alluded to, we've already, I think, been one of a few companies out in front sort of talking about some of the real value that we're generating from our AI investments.

Speaker #9: Last quarter, we talked about some of the professional services savings that we're seeing. This quarter, we launched 3 additional initiatives. One of which is a natural language leasing search on our website that is driving improved lead inbound, qualified lead inbound.

Speaker #9: to our leasing team. We put some additional automations into production this quarter to specifically support the billing and collections effort that Glenn mentioned, and automation is now saving over 5,000 hours a year across our enterprise.

Will Teichman: We put some additional automations into production this quarter to specifically support the billing and collections effort that Glenn mentioned, and automation is now saving over 5,000 hours a year across our enterprise. Finally, we have had a particular focus this quarter around building new agentic workflows for transaction underwriting and tenant financial screening, both of which have reduced our cycle times roughly in half. Those are some of the things that we have going from a tech perspective, and looking forward to sharing more results as the program and One Kimco continues to mature.

Speaker #9: And then, finally, we've had a particular focus this quarter around building new agentic workflows for transaction underwriting and tenant financial screening, both of which have reduced our cycle times by roughly half.

Speaker #9: So those are some of the things that we have going from a tech perspective and looking forward to sharing more results as the program and when KIMCO continues to mature.

Operator: Your next question comes to the line of Linda Tsai with Truist Securities. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Linda Tsai with Truist Securities. Your line is open. Please go ahead.

Linda Tsai: Hi. Good morning. Back on the topic of tenant package deals, Kimco completed 10 package deals comprising 60 leases representing over 20% of new lease GLA. How do those metrics compare in 2026? On the 2027 pipeline, any color in terms of the retailers where you are having discussions?

Speaker #12: Hi, good morning. Back on the topic of tenant package deals, KIMCO completed 10 package deals comprising of 60 leases representing over 20% of new lease

Speaker #14: GLA. How do those metrics compare in '26? And then on the '27 pipeline, any color in terms of the retailers where you're having discussions?

Dave Jamieson: I think this quarter is an acceleration of the package program now that we have stood up our national accounts team under our national leasing platform. We can now package multiple LOIs as one and then transfer it over to the national account team for execution. This is very much a cornerstone of how we can accelerate the deal flow and build continuity and consistency with the messaging and the negotiation between ourselves and the retailer. Retailers have been very supportive of this because it clears the lanes and gets really down to the fundamentals of what we want to focus on, which is opening the store and letting them operate their store. We will continue to see that as a trend going forward. I mentioned earlier in Q&A about the 2027 pipeline, just in terms of philosophy right now.

Speaker #12: Yeah, I mean, it's— I think this quarter it's an acceleration of the package program now that we've stood up our national accounts team under our national leasing.

Speaker #12: platform, we can now package, you know, multiple LOIs as one and then transfer it over to the national account team for execution. So this is very much a cornerstone of how we can accelerate the deal flow and build continuity and consistency with the messaging and the negotiation between ourselves and the retailer.

Dave Jamieson: Retailers have been very supportive of this because it clears the lanes and gets really down to the fundamentals of what we want to focus on, which is opening the store and letting them operate their store. We will continue to see that as a trend going forward. I mentioned earlier in Q&A about the 2027 pipeline, just in terms of philosophy right now.

Speaker #12: Retailers have been very, very supportive of this because it just, clears the lanes and gets really down to the fundamentals of what we want to focus on, which is opening the store and letting them operate their store.

Speaker #12: So we'll continue to see that as a trend going forward. I mentioned earlier in Q&A about the '27 pipeline, just in terms of philosophy right now.

Dave Jamieson: Again, we have 56 anchor leases that have no options coming up. Right now, we are looking at in the H1 of the year, of those that roll in the H1 of the year, almost 75% of those are already resolved or in process of getting resolved at a meaningful mark-to-market adjustment. So trend lines are looking very good for 2027 in this environment because, again, no supply. These retailers need to continue to hit their open-to-buy strategies and grab market share. As Conor mentioned, with the omni-channel evolution and how they are continuing to leverage that store to optimize their sales growth, we are seeing that flow through in terms of our discussions and demand.

Speaker #12: Again, we have 56 anchor leases that have no options coming up. We've Right now, we're looking at, you know, in the first half of the year, of those that roll in the first half of the year, almost 75% of those are already resolved or in process of getting resolved at a meaningful mark-to-market adjustment.

Speaker #12: So trend lines are looking very good for '27 in this environment because again, no supply. These retailers need to continue to hit their open-to-buy strategies and grab market share.

Dave Jamieson: open-to-buy strategies and grab market share. As Conor mentioned, with the omni-channel evolution and how they are continuing to leverage that store to optimize their sales growth, we are seeing that flow through in terms of our discussions and demand.

Speaker #12: And as Conor mentioned, you know, with the omnichannel, evolution and how they're continuing to leverage that store to optimize their sales growth, you know, we're seeing that flow through in terms of our discussions and demand.

Dave Jamieson: I would just add, we do a lot of portfolio reviews with all of these major retailers, and being able to do these package deals is a true advantage of our scale. You cannot do it if you only own 40 properties, but because of our size and where we are located, it is a true advantage of our scale and a true differentiator.

Ross Cooper: I would just add, we do a lot of portfolio reviews with all of these major retailers, and being able to do these package deals is a true advantage of our scale. You cannot do it if you only own 40 properties, but because of our size and where we are located, it is a true advantage of our scale and a true differentiator.

Speaker #13: So, I would just add, you know, the, you know, we do a lot of portfolio reviews with all of these major retailers and the being able to do these package deals is a true advantage of our scale.

Speaker #13: You know, you, you can't do it if you only own 40 properties, but because of our size and where we're located, it is a true advantage of our scale and a true differentiator.

Ross Cooper: About that.

Operator: Your next question. Go ahead.

Speaker #13: Your next question— oh.

Speaker #12: Go ahead. Mike?

Ross Cooper: Mike?

Mike Mueller: Hey, sorry. Sorry about this.

Speaker #8: Hey, sorry, sorry about that. Mike Mueller with JP Morgan. Go ahead.

Operator: Your next question comes from Mike Mueller with JPMorgan. Go ahead.

Mike Mueller: Yeah. Hi. Sorry, in transit here, bad reception. For resi capital recycling, it sounds like you are going to obviously pursue some additional sales over time. But just curious, are you also looking at any new starts today and/or just outright entitled land sales as well?

Speaker #9: Yeah, hi. Sorry, in transit here, bad reception. For resi capital recycling, it sounds like you're going to obviously pursue some additional sales over time, but just curious, are you also looking at any new starts today and/or just outright entitled land sales as well?

Ross Cooper: Yeah. Thanks, Mike. We are. It continues to be an opportunistic program. So we broke ground on The Chester out in California, which we are really excited about. We are looking at another project that we are about to break ground in Connecticut. So we continue to evaluate on a one-off basis. I think we have talked about it in the past, but we look at our decision tree to determine at what point and in what structure makes the most sense to activate these projects. So with the amount of entitlements that we have, upwards of 10,000 entitled units that are not built or have not broken ground, we can look at each and every one of these projects, determine the market in which it is located, where their projected rent levels are, the demand from a joint venture partner, multifamily developer to build it alongside us.

Speaker #6: Yeah, thanks, Mike. We are, and it continues to be an opportunistic program. We broke ground on the Chester out in California, which we're really excited about.

Speaker #6: We're looking at another project that we're about to break ground in Connecticut. So we continue to evaluate on a one-off basis. I think we've talked about it in the past, but You know, we look at our decision tree to determine at what point and in what structure makes the most sense to activate these projects.

Ross Cooper: So with the amount of entitlements that we have, upwards of 10,000 entitled units that are not built or have not broken ground, we can look at each and every one of these projects, determine the market in which it is located, where their projected rent levels are, the demand from a joint venture partner, multifamily developer to build it alongside us.

Speaker #6: So, with the amount of entitlements that we have, upwards of 10,000 entitled units that are not built or haven't broken ground, we can look at each and every one of these projects, determine the market in which it's located, where their projected rent levels are, the demand from a joint venture partner.

Speaker #6: Multifamily developer to build it alongside us, and ultimately make a determination. Is this a project that we want to activate in the near term?

Ross Cooper: Then ultimately make a determination, is this a project that we want to activate in the near term? Do we want to do a long-term ground lease? Does it make more sense to sell the entitlements and the dirt rather than build it ourselves? So we are looking at each and every one of those projects, and then we figure it out and determine our strategy on a case-by-case basis.

Speaker #6: Do we want to do a long-term ground lease? Does it make more sense to sell the entitlements? and the dirt rather than build it ourselves.

Speaker #6: So, we're looking at each and every one of those projects, and then we figure it out and determine our strategy on a case-by-case basis.

Dave Jamieson: Yeah, it is a very active program, as Ross just laid out. So we will have another project going active in this next quarter. We look at this whole program really as a form of currency, right? If you go into our supplemental, you see near-term entitled mixed-use projects. It is 3,500 units. It is 13 projects themselves. All of that is a form of currency that either we can, as Ross said, sell ground lease, build to sell, stabilize and sell, and then recycle that into higher yielding, higher growth core shopping center assets, and that is our focus. With so many entitled units, and we are still looking to entitle more within our portfolio. We see this as a nice flywheel effect that is just starting to take hold really in the last 2 years.

Speaker #6: Yeah. And it's a very active

Speaker #12: program, as Ross just laid out. And so, we will have another project going active in this next quarter. And we look at this whole program really as a form of currency.

Speaker #12: Right? And so, if you go into our supplemental, you see near-term entitled mixed-use projects. It's 3,500 units. It's 13 projects themselves. And all of that is a form of currency that either we can as Ross said, sell.

Dave Jamieson: All of that is a form of currency that either we can, as Ross said, sell ground lease, build to sell, stabilize and sell, and then recycle that into higher yielding, higher growth core shopping center assets, and that is our focus. With so many entitled units, and we are still looking to entitle more within our portfolio. We see this as a nice flywheel effect that is just starting to take hold really in the last 2 years.

Speaker #12: Ground lease, build to sell, stabilize and sell, and then recycle that into higher yielding, higher growth core shopping center assets. And that's our focus.

Speaker #12: With so many entitled units, and we're still looking to entitle more on, you know, within our portfolio, we see this as a nice flywheel effect that's just starting to take hold.

Speaker #12: You know, really in the last 2 years.

Operator: Your next question comes from the line of Paulina Rojas with Green Street. Your line is open. Please go ahead.

Speaker #8: Your next question comes from the line of Paulina Rojas with Green Street. Your line is open. Please go ahead. Good morning.

Paulina Rojas Schmidt: Good morning. It seems like the cap rates have been relatively sticky, particularly for high growth assets. Can you share more detail on the dynamics that you are observing? Are deals in general taking longer to close or are centers being repriced more often? More generally, where, if anywhere, are you seeing signs of pricing moving up given the higher rate environment?

Speaker #13: It seems like the cap rates have been relatively sticky, particularly for high-growth assets, but can you share more detail on the dynamics that you're observing?

Speaker #16: Are there deals that, or are deals in general taking longer to close, or

Speaker #14: Or are centers being repriced more often? And more generally, where, if anywhere, are you seeing signs of pricing moving up given the higher rate environment?

Ross Cooper: Yeah. Thanks, Paulina. I think that the short and easy response to that is it depends. We continue to see assets that are institutional quality, primarily grocery anchored with growth, pricing as aggressively as we've seen and really have not been impacted whatsoever by the volatility in rates. Now, keep in mind, as rates have risen somewhat dramatically, they've also dropped back down about 30 basis points in the last couple of weeks. The volatility isn't only going in one direction. I think the important part is to determine what is the source of capital that you're utilizing to make this investment. All cash buyers are clearly going to be less sensitive to the rate movements than you have with a more levered buyer.

Speaker #6: Yeah, thanks, Paulina. I mean, I think that the short and easy response to that is it depends. We continue to see assets that are institutional quality, primarily grocery anchored with growth, pricing as aggressively as we've seen, and then really have not been impacted whatsoever by the volatility in rates.

Speaker #6: Now, keep in mind, as rates have, have risen somewhat dramatically, they've also dropped back down about 30 basis points in the last couple of weeks.

Speaker #6: So, the volatility isn't only going in one direction. So I think the important part is to determine what is the source of capital that you're utilizing to make this investment.

Speaker #6: All cash buyers are clearly going to be less sensitive to the rate movements than you have with a, a more levered buyer. So, the product and the quality is going to go into whether or not that discussion on pricing is, is occurring or whether or not there's capitulation between the buyers and sellers.

Ross Cooper: The product and the quality is going to go into whether or not that discussion on pricing is occurring or whether or not there's capitulation between the buyers and sellers. I think there will be certain deals that fall out based upon volatility, but we're still seeing a tremendous amount of activity and a lot of deals getting over the finish line, notwithstanding the volatility in the marketplace. As we mentioned, anything that is more rate sensitive, single-tenant assets in particular, are going to have movement based upon where the rate environment is. But growth assets and high-quality multi-tenant shopping centers continue to be one of the, if not the, most in-demand asset class, and we're seeing just more capital chasing these deals than there is supply, so pricing is remaining very competitive.

Speaker #6: I think there will be certain deals that fall out based upon volatility, but we're still seeing a tremendous amount of activity and a lot of deals getting over the finish line.

Speaker #6: Notwithstanding the volatility in the marketplace. As we mentioned, anything that is, is more rate sensitive, single tenant assets in particular, are going to have movement based upon where the rate environment is, but growth assets on high-quality multi-tenant shopping centers continue to be one of the, if not the most in-demand asset class.

Ross Cooper: As we mentioned, anything that is more rate sensitive, single-tenant assets in particular, are going to have movement based upon where the rate environment is. But growth assets and high-quality multi-tenant shopping centers continue to be one of the, if not the, most in-demand asset class, and we're seeing just more capital chasing these deals than there is supply, so pricing is remaining very competitive.

Speaker #6: And we're seeing just more capital chasing these deals than there is supply. So, pricing is remaining very competitive.

Operator: Your next call comes from the line of Michael Gorman with U.S. Bancorp. Your line is open. Please go ahead.

Speaker #8: Your next call comes from the line of Michael Gorman with U.S. Bancorp. Your line is open. Please go ahead.

Michael Gorman: Yeah, thanks. Good morning. Maybe just one more on the investment side. Just trying to triangulate a little bit here. We are in one of the best retail operating environments probably ever. A ton of institutional demand for the product. Yet on the structured investment program, you are seeing increased quality and increased opportunities. I am just curious, what is driving these owners into the orbit of the structured investment program? Is it CapEx? Is it development funding? What brings them to the table or brings them in as an opportunity for SIP in this kind of otherwise strong environment?

Speaker #6: Yeah, thanks. Good morning. Maybe just one more on the investment side. I'm just trying to kind of triangulate a little bit here. We're in one of the best retail operating environments probably ever, a ton of institutional demand for the product.

Speaker #9: Yet on the structured investment program, you're seeing increased quality and increased opportunities. I'm just curious, what is driving these owners into the orbit of the structured investment program?

Speaker #9: Is it CapEx? Is it development funding? Kind of what brings them to the table or brings them in as an opportunity for SIP in this kind of otherwise strong environment?

Ross Cooper: Yeah, it is a good question, and I think frankly, that is the beauty of the program. While we refer to it as our structured investment program, we really view it as a capital solutions program. So I think every deal is unique. They all have their own story. The structures that we negotiate are bespoke. There is really no two deals that are exactly alike. So to your point, it is a combination of a variety of factors. Oftentimes, it is the fact that we can provide more flexible capital. So whether it be the ability or the willingness to accept a payoff earlier than a traditional lender would and lock in a significant prepayment penalty. Some of the differentiations that I think we talked about earlier, whether it be our tenant relationships and assistance there.

Speaker #6: Yeah, it's a good question. And I think, frankly, that's the beauty of the program. While we refer to it as our structured investment program, we really view it as a capital solutions program.

Speaker #6: So, I think every deal is unique. They all have their own story. The structures that we negotiate are bespoke. There's really no 2 deals that are exactly alike.

Ross Cooper: So to your point, it is a combination of a variety of factors. Oftentimes, it is the fact that we can provide more flexible capital. So whether it be the ability or the willingness to accept a payoff earlier than a traditional lender would and lock in a significant prepayment penalty. Some of the differentiations that I think we talked about earlier, whether it be our tenant relationships and assistance there.

Speaker #6: And so, to your point, it's a combination of a variety of factors. Oftentimes, it's the fact that we can provide more flexible capital. So, whether it be the ability or the willingness to accept the payoff earlier than a traditional lender would and not lock in, you know, a significant prepayment penalty.

Speaker #6: Some of the differentiations that I think we talked about earlier, whether it be our tenant relationships and assistance there. Certainly in an environment where there's volatility in the, in the rate environment and the lending community, I think the fact that we in the capital stack can help the execution with the senior lender is, is very much a differentiator for us.

Ross Cooper: Certainly in an environment where there is volatility in the rate environment and the lending community, I think the fact that we in the capital stack can help the execution with the senior lender is very much a differentiator for us. Then I think just there are deals that are in transition, whether it be a repositioning, redevelopment opportunity. Not only do we provide that capital, but I think as an operator that can underwrite those changes and understand what it means and get a good sense of comfort by speaking directly to the retailers that might be under construction or signing a lease but not yet open.

Speaker #6: And then I think there are just deals that are in transition, whether it be a repositioning or redevelopment opportunity. Not only do we provide that capital, but I think as an operator, we can underwrite those changes, understand what it means, and get a good sense of comfort.

Ross Cooper: Not only do we provide that capital, but I think as an operator that can underwrite those changes and understand what it means and get a good sense of comfort by speaking directly to the retailers that might be under construction or signing a lease but not yet open. All of those factors, I think, play into why a borrower would look to Kimco Realty to participate in that asset or in that investment, because we just do understand this real estate and the process better than a traditional lender, better than a debt fund, or better than a passive investor would.

Speaker #6: By speaking directly to the retailers that might be under construction or signing a lease, but not yet open. All of those factors, I think, play into why a borrower would look to Kimco to participate in that asset.

Ross Cooper: All of those factors, I think, play into why a borrower would look to Kimco Realty to participate in that asset or in that investment, because we just do understand this real estate and the process better than a traditional lender, better than a debt fund, or better than a passive investor would.

Speaker #6: Or in that investment, because we just do understand this real estate and the process better than a traditional lender, better than a debt fund, or better than a passive investor would.

Operator: There are no further questions at this time. We have reached the end of the Q&A session. I will now turn the call back to David Bujnicki for closing remarks.

Speaker #8: There are no further questions at this time. We have reached the end of the Q&A session. I will now turn the call back to David Bujnicki for closing remarks.

David Bujnicki: We appreciate everybody that took the time to join our call today. If you do have any follow-up questions, please don't hesitate to reach out. With that, we hope everyone enjoys the rest of their day. Thank you.

Speaker #9: We appreciate everybody that took the time to join our call today. If you do have any follow-up questions, please don't hesitate to reach out.

Speaker #9: And with that, we hope everyone enjoys the rest of their day. Thank you.

Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Access the Kimco Realty Corporation IR website for more information. This line will now disconnect.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.